19, July 2021

What Is General Liability Insurance?

Does your business have general liability insurance? Should it? Before you answer, allow us to introduce you to what is covered under general liability insurance. Common business risks such as the following are covered by general liability insurance:

  • Advertising injury
  • Customer property damage
  • Customer injury

This type of insurance can help you qualify for contracts and leases as well as protect your small business from the exorbitant costs involved with lawsuits.

General Liability Insurance and Small Business

Particularly if a business owns or rents commercial space or office space, this type of insurance is necessary. Additionally, requirements for general liability insurance can include client contracts.

Regardless, a CGL policy (commercial general liability) can benefit businesses that work directly with customers and clients. For example, if you are sued by a competitor or customer, the future financial stability of your business can be determined by whether you have an insurance policy in place or not.

Immediately after starting your business, it’s a good idea to invest in the right type of coverage and general liability insurance.

Does Your Business Need This Type of Insurance?

If your business falls under the following statements, general liability coverage is crucial:

Your business…

  • Owns or rents commercial property.
  • Handles client property.
  • Works closely with clients or customers.
  • Has a location that is accessible by the public.

What's Covered?

What is covered under a commercial general liability insurance policy? From people outside your business – third parties – common liability claims are covered under general liability insurance. If, over advertising injury, property damage, or bodily injury, someone sues you, your defense costs will be covered. Everything from court-ordered settlements and judgments to the hiring of a lawyer can be covered by your CGL policy.

Is General Liability Insurance Legally Required?

Though for certain industries (think construction and similar types of businesses) general liability insurance may be mandated, generally speaking, it is not. That said, it may well be required by clients, a mortgage company, landlords, and more, even if it isn’t required by law.

As an example, a client or landlord may request proof of your business’s general liability insurance coverage through the showing of a certificate of insurance. This is a document that will assure others that property damage lawsuits, personal injuries, and more can be handled by your business.

Benefits of General Liability Insurance

Your business can be better protected through a commercial general liability insurance policy. Small businesses, contractors, home businesses, and more will be covered in the following situations:

  • Advertising injury protection
  • Liability protection

For different industries, those two categories have specific conditions. As an example, for a small business, if you want protection against advertising injury lawsuits when you launch your first advertising campaign, general liability insurance can help. Additionally, general liability insurance can be (and often is) required by a landlord when you sign a commercial lease.

Who Can You Turn to For Help with Business or Commercial Insurance?

At K&N Brokerage, we understand just how important various types of insurances are to businesses, both large and small. That’s why we take the time to get to know your specific business and use our experience, knowledge, and professionalism to help determine which insurance best suits you and your business needs.

Contact us today for the answers to your questions or to discuss coverage.