Tag: Can You Get General Liability Insurance as an Individual?

What Does Liability Insurance Actually Cover?

Owning and operating a business can come with unforeseen expenses, such as liability claims. Many businesses are unprepared to cover these costs, even though liability claims are unfortunately quite common and usually result from normal business operations. Having liability insurance coverage can keep your business from having to pay these costs out of pocket. Read on to find out what types of claims liability insurance can protect you from.

What Does Liability Insurance Actually Cover?

Sensible risk management strategies are a must for business owners, as it’s essential to keep your business protected from unnecessary expenses. Though there are many perils associated with business ownership, the number one way to keep your business protected is to ensure your business is properly insured. When you’re unexpectedly hit with a liability claim, insurance can be the difference between your business coming out on top or facing financial ruin.

Liability coverage is an excellent ally in keeping your business protected because its coverage extends to multiple facets of running a business. Claims related to injuries on your premises, damage to your client’s property, or even allegations of copyright infringement and false advertising are all covered under this type of insurance – and these are just a few examples! Liability is the type of insurance you need in your corner for mitigating all the risks of business ownership.

What Types of Claims are Covered by This Policy?

There are many situations in which your business could be held responsible and expected to pay for. Proper insurance coverage prevents you from paying these various costs out-of-pocket. This type of insurance includes coverage for expenses, such as legal and medical expenses, as well as compensatory and punitive damages related to the following types of claims:

Bodily Injury 

Bodily injury coverage provides protection against losses for bodily injury to others (including clients, customers, or employees) that may have been caused by your operations. Whether you’re found liable for bodily injury due to non-professional negligent acts or due to your premises or business operations, this type of insurance can cover medical expenses and legal expenses associated with this type of claim.

Bodily injury includes physical and/or mental injuries to a client, customer, or employee that may have been caused by your operations, including emotional distress. Common bodily injury lawsuits include customer slip and falls (ex: a customer slips on loose or wet flooring while visiting your business and is injured), and other tortious acts that may cause a claimant to suffer loss or harm, such as intentional infliction of emotional distress, and negligence.

Property Damage

Property damage coverage, like bodily injury coverage, provides protection against losses from the legal liability of your business for property damage occurring due either to non-professional negligent acts or arising out of the premises or business operations. In the event that your business causes property damage, including employee accidents, this insurance will cover the costs of the damage.

For example, if your employee accidentally breaks a client’s windows while working at their home, the cost of the damages will be covered by your insurance. Another example would be if your employee leaves the water running at a client’s home and causes substantial damage; without insurance, your company would be expected to pay for the costs of this damage. However, having insurance means your employee’s mistakes won’t cost you any extra coin.

Product Liability

Product liability is essential coverage for manufacturers and any businesses that sell goods. While we know customer safety is always a priority, sometimes bodily injury or property damage can occur due to an unfortunate product malfunction. Product liability will cover the costs of any claims related to bodily injury or property damage caused by a product you sell or manufacture.

Tenant Liability

Tenant liability protects your business from damage to property that you lease or occupy for business purposes. This protects you against the day-to-day risks of running a business within a rented space, including lawsuits and payments of claims related to third-party bodily injury or property damage. It’s common for landlords to require proof of insurance before renting out a space, so having proper coverage is an asset when looking for a new home for your business.

Personal Injury, Advertising Injury, and Reputational Harm

Liability coverage keeps you protected in the event of personal and/or advertising injury claims made against your business. You’d be surprised how easy it is to find yourself facing an advertising injury claim; saying something untoward about a competitor to the wrong audience, for example, could result in being hit with a defamation lawsuit. Similarly, making grandiose claims in an ad campaign could see you facing a class-action lawsuit for allegations of false advertising.

Personal and advertising injury liability protects your business against a range of offenses, such as:

  • Libel
  • False advertising
  • Slander
  • False arrest
  • Defamation
  • Malicious prosecution
  • Wrongful eviction
  • Wrongful entry
  • Invasion of privacy

Copyright Infringement

In addition to advertising injury claims, this type of insurance protects you from lawsuits alleging the unlawful use of another’s advertising idea or copyright. Copyright infringement occurs when someone else’s work is used on your product or in your business’ ads without the express permission of the copyright holder. If your business is found infringing on another’s copyright, your liability coverage will cover the cost of damages and legal fees.

Other Costs Covered by a General Liability Policy

In addition to these specific types of claims, a general liability policy will help to cover the administrative costs associated with handling all the covered claims described above. The amount of coverage for these costs will vary, as they depend on the limits of your specific policy. Additionally, this type of policy will cover smaller medical claims that do not require litigation and a variety of costs related to legal defense and the process of litigation.

Medical Payments

A general liability policy offers limited coverage for medical payments, including payments for injuries sustained by clients or customers that were caused by an accident taking place on the premises of your business or when exposed to your business operations. Medical payments coverage does not require legal action to be accessed, meaning your business is able to settle smaller medical claims promptly and without litigation.

This type of policy will cover all necessary and reasonable medical expenses accrued by a person injured or killed in an accident that takes place on your business premises or arises from your business operations. This includes surgical costs, ambulance fees, hospital fees, professional nursing expenses, and funeral expenses. Since medical payment coverage is provided on a no-fault basis, there is no defense or legal liability coverage.

Legal Defense Costs

Liability insurance will cover all legal fees, including court costs, legal defense, judgments, and settlements for the above types of claims. On your behalf, your insurance will pay all damages if you are found liable (up to the coverage limits of your policy). Your policy will also cover the costs associated with administrative work and legal secretaries.

Complementary Policies

While this type of insurance covers a wide range of expenses, there are certain additional policies you’ll need to purchase to ensure your business has complete coverage. Workers compensation, employment practices liability, liquor liability, pollution liability, and professional liability may be beneficial complementary policies for you. Talking to an experienced insurance professional can help you to determine which endorsements are right for your business.

What Type of Businesses Need General Liability Coverage?

No matter the size of your business, or your industry, you can benefit from general liability coverage. This type of insurance is especially beneficial for businesses with locations that are accessible to the general public, as well as businesses that:

  • Work directly with customers and/or clients
  • Manage client-owned property and/or assets
  • Rent or own commercial space

Independent contractors and entrepreneurs can also benefit from this type of insurance, as they can also be held liable for the same injuries and damages that general liability policies cover. Liability claims can be extra difficult for independent contractors and entrepreneurs because they’re solely responsible for their finances. Choosing not to properly insure a sole proprietorship can, unfortunately, lead to significant financial hardship and even bankruptcy.

What You Risk When You Remain Uninsured

If someone files a claim against your business, the cost of legal defense and court fees can add up quickly. With the additional costs of administrative work, legal secretaries, and any associated costs from judgments or settlements, your business can be stuck footing an extremely expensive bill. We’re talking hundreds of thousands of dollars! A general liability insurance policy is essential for helping your business cover these costs.

General liability insurance is the most important insurance coverage for your business to have. A lawsuit can have an immense negative impact on a business; without proper insurance, facing a claim of any kind can place a tremendous financial strain on your company’s bottom line. Because liability suits happen so frequently, you need a good insurance plan in your corner. Visit ISU Armac today to pair your business with the best agency for all your insurance needs.

Can You Get General Liability Insurance as an Individual?

As someone running a business, whether you have employees or you work alone as an individual, protecting yourself and your work is the most important thing to do. At ISU Armac, our insurance options, including general liability insurance, will help keep you and your business safe.

Can You Get General Liability Insurance as an Individual?

If you are looking for ways to protect yourself and your business, then general liability insurance is something that you’re going to want to consider. Businesses can benefit greatly from this type of insurance, especially if something unexpected happens in your workplace.

This type of insurance is an integral part of protecting yourself, your clients, and your business. But while it’s important to have if you run a business with employees, you might be wondering if it’s something that could be useful if you’re an individual or an independent contractor? Can it still benefit you? The answer is yes, and there are plenty of ways it can do that. Let’s get to know a little bit more about this kind of insurance, and the ways it can protect you.

What Is General Liability Insurance?

When you have your own business, whether it’s something that requires employees or something that you’re running on your own, there are lots of things that can go wrong. The good news is that many of these things you can plan for. The bad news is that sometimes life has unexpected things in store for you.

The fact of the matter is that you can’t plan for everything! Accidents happen, and these accidents could result in a serious strain on your business. General liability insurance, or GLI, is an essential way to keep your safe in the event that an accident happens.

What Does GLI Cover?

When you get GLI, you and your business will be covered for a variety of issues. These issues can also vary from state to state. Broadly speaking, there are a few issues that GLI will provide coverage for.

Product Liability.

If you sell or manufacture a product that unintentionally harms someone or causes property damage, then the person who purchased your product may demand compensation for these damages.

If something like this happens, GLI will provide you with product liability insurance. This will help you cover the costs of damages and other legal expenses if something goes wrong with your product.

Bodily Injury

Bodily injury can come in many forms and can be caused by a wide range of things. If something related to your business causes someone else bodily injury and you and your business are at fault, then the injured person can seek out compensation.

If a customer or client has been injured in this manner, then GLI will help you cover any costs associated with fixing the issue.

Tenant Liability 

Your business may require that you operate out of a facility separate from your home. In these cases, you may need to rent out space where your operating procedures can take place. While you may do your best to keep things clean and running smoothly, there are some things that you may not be able to account for.

If any part of your business results in damages to the space you’re renting out, you’ll be responsible for the damages. GLI will help you cover the cost of these damages.

Advertising Injury

This may be a surprising possibility, but injury or damages resulting from advertising are very real possibilities and something you need to protect yourself from. Some examples of injury caused by advertising include libel, slander, piracy, defamation, and violation of privacy.

If your advertising causes harm to another person or business, then that could put you at risk for some costly legal fees. If you are accused of anything libel, slander, or false advertising, then GLI can help you cover the fees needed to combat this.

How Does GLI Help Individuals?

Regardless of whether you have a multi-employee business or you are a freelancer working for yourself, running any kind of business comes with a certain level of risk. As an independent worker or contractor, you have the same level of risk that anyone else running a small business has. If something happens that results in injury or damages, then you’ll be responsible for paying out of pocket if you’re not covered by insurance. That can put a serious dent in your finances.

That said, different individuals performing different jobs will have varying levels of risk. The same is true for any business owner. For example, if you are an independent contractor that works as a carpenter, then you would have different risks than someone who works as a hairstylist. However, GLI would cover the risks of both types of work.

How Much Will GLI Cost Me As an Individual?

When it comes to getting any type of insurance, one of the biggest questions and concerns is how much it’s going to cost you. Just like any type of insurance, the amount that you pay for your GLI is going to depend on several factors. Your GLI will cost you a different amount than someone else’s.

Some of the things that will contribute to how much you pay for your insurance include the following factors:
•    The number of years you’ve been in business
•    The type of business you run
•    Your business experience
•    Your annual revenue
•    Your history or claims

What Business Should Have GLI?

It doesn’t matter whether your business requires multiple employees to run or if you work for yourself. If you run a business, regardless of its size, then you should have GLI. All businesses are at risk for accidents, and therefore at risk for significant financial and legal issues.

However, there are some types of businesses that are more at risk for certain issues than others. So, even though all businesses should have GLI, if your business falls within the following categories, you are definitely going to want GLI to protect you.

You Work with Clients or Customers

If you are spending time working one-on-one with customers and clients, then that can carry a high level of risk.

If a client or customer is injured or experiences damages related to your business, then having GLI to cover the costs of these damages and get any legal help you might need will be crucial.

Your Location Is Accessible to the General Public

The more people there are that enter your business, the more chances there are for accidents to happen, and therefore the more at risk you are for injuries and damages. The general public can be especially unpredictable, which increases the chances of something happening at your business.

If your business is accessible to the general public, then you are going to want to make sure you have GLI even if you are an independent worker.

You Manage Client-Owned Property or Assets

There are many cases where your business might be in charge of managing assets or property that are owned by your clients. When you take on these assets, you are responsible for keeping them safe.

But accidents do happen, and sometimes life has things in store that we can’t anticipate. For cases like these, GLI will help cover the costs if any of your clients’ assets or properties are damaged because of your business.

You Rent Property

If your business requires that you rent out property outside of your home, then it’s important that you are properly insured. Even if you are as careful as possible when you work, there is still the risk that something could go wrong and the property you are renting gets damaged.

If you are renting commercial space, then you’ll want GLI to protect you in case anything ever goes wrong.

Other Types of Insurance

GLI is essential if you are looking for overall protection for your business, whether you’re a small business owner or you work as an individual.

If you are an individual or independent contractor, then you may want to consider looking into these types of insurance as well:

Business Auto Insurance

If your business requires that you drive, then you might want to consider getting business auto insurance. Essentially any vehicle that your business uses can be covered under a business auto insurance plan.

These plans can cover a range of different things, including injury or personal damage that could be caused by an accident.

Cyber Liability Insurance

If your business requires the use of computers, then you could be at risk for a cyber-attack. These attacks can be devasting and expensive to fix.

Cyber liability insurance is a specialized insurance product that we offer that will help you cover the costs of expenses and damages related to this type of attack.

When it comes to any type of business, having insurance is important. Even if you’re an individual, general liability insurance is something important to consider having. Get in touch with us today at ISU Armac to learn more about how our insurance can protect you.

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