Running a small business can be a risky venture. Despite the best efforts of business owners to create a safe environment for their employees and customers, accidents can still happen. In these situations, it’s important to have general liability insurance to protect your business. But what exactly does general liability insurance cover? Let’s take a closer look.
General liability insurance is a type of insurance that provides coverage for injuries or damages that occur on your business’s property or as a result of your business’s operations. This type of insurance is essential for small business owners as it protects them from financial losses resulting from lawsuits, property damage, and other liability claims. Here are some of the things that general liability insurance covers:
1. Property Damage
If your business operations cause damage to someone else’s property, general liability insurance can cover the costs of repairing or replacing the damaged property. This can include damage to a customer’s vehicle in a parking lot or damage caused by an employee during a service call.
2. Bodily Injury
General liability insurance can also cover bodily injury that occurs on your business’s property or as a result of your business’s operations. This can include slip and fall accidents, injuries caused by faulty equipment or products, or injuries sustained during a service call.
3. Product Liability
If your business sells products, you may be liable for any harm caused by those products. General liability insurance can provide coverage for product liability claims, including injuries caused by defective products or products that do not meet safety standards.
4. Advertising Injury
If your business’s advertising causes harm to another business or individual, general liability insurance can provide coverage for advertising injury claims. This can include claims of defamation, copyright infringement, or invasion of privacy.
5. Legal Defense Costs
In addition to covering the costs of damages or settlements resulting from liability claims, general liability insurance can also cover legal defense costs. This can include the costs of hiring a lawyer, court costs, and other legal fees associated with defending your business against a liability claim.
General liability insurance is an essential type of insurance for small business owners. It provides coverage for a variety of liability claims, including property damage, bodily injury, product liability, advertising injury, and legal defense costs. By having general liability insurance, small business owners can protect themselves from financial losses resulting from liability claims and focus on growing their business without worrying about potential legal issues.