5 Essential Insurance General Liability Coverage Facts Every Business Owner Should Know

General liability coverage (GLC) is considered one of the most important types of insurance for businesses of all sizes. It protects businesses from financial losses resulting from claims of bodily injury or property damage caused by their operations, products, or services. According to the Insurance Information Institute (III), over 40% of small businesses fail within the first five years, and a significant number of these failures are due to financial losses from lawsuits stemming from customer or third-party injuries or property damage.

This article will discuss five essential facts every business owner should know about insurance general liability coverage:

1. What is General Liability Insurance (GLC)?

GLC is a type of business insurance that protects businesses from financial losses resulting from claims of bodily injury or property damage caused by their operations, products, or services. It covers a wide range of potential risks, including:

• Bodily injury or property damage caused by your products or services
• Injuries or property damage caused by your employees
• Injuries or property damage caused by your business premises
• Libel, slander, or defamation claims
• Advertising injuries

2. Who Needs General Liability Insurance (GLC)?

All businesses need general liability coverage, regardless of their size or industry. However, some businesses may need more coverage than others. Businesses that are more likely to be sued, such as those that manufacture or sell products, provide services to the public, or own or rent property, should consider carrying higher limits of coverage.

3. How Much General Liability Insurance (GLC) Do I Need?

The amount of general liability insurance you need depends on several factors, including the size and nature of your business, the value of your assets, and your risk tolerance. Most experts recommend that businesses carry at least $1 million in general liability coverage. However, some businesses may need more coverage, such as those that operate in high-risk industries or have a history of claims.

4. What Does General Liability Insurance (GLC) Cost?

The cost of general liability insurance varies depending on several factors, including the size and nature of your business, the amount of coverage you need, and your claims history. However, most businesses can expect to pay between $300 and $1,000 per year for general liability coverage.

5. How Can I Get General Liability Insurance (GLC)?

There are several ways to get general liability insurance. You can purchase a policy through an insurance agent or broker, or you can buy it online. However, it is important to compare quotes from multiple insurance companies before you purchase a policy to ensure you are getting the best possible price.

Conclusion

General liability coverage is essential for all businesses. It protects businesses from financial losses resulting from claims of bodily injury or property damage caused by their operations, products, or services. By understanding the essential facts about general liability insurance, business owners can make informed decisions about the coverage they need to protect their businesses.

Here are some additional tips for businesses considering general liability insurance:

• Make sure your policy covers all of your business activities.
• Consider purchasing additional coverage, such as product liability insurance or professional liability insurance, if you need it.
• Review your policy regularly to ensure that you have the right amount of coverage.
• Keep your insurance company informed of any changes to your business, such as new products or services or changes in your business premises.