Commercial general liability insurance is the most basic form of liability protection for business owners. For the most part, this is limited to bodily injury or property damage. Depending on your industry, business type, or location, more specific additions to general liability may be necessary to fully protect your business and employees from a lawsuit.
Your business can be held responsible for injuries or damages incurred on or off your property, even if you are not negligent. In the event of a lawsuit, your insurance carrier will pay for your defense, including court fees, judgments, settlements, and medical expenses.
Your Estate Plan
You should include all of your general liability policies in your estate plan.
- The language in the estate plan concerning your business will depend largely on who owns your business. If you and a spouse or other family members are joint owners of the business, the estate plan needs to reflect this status and all related insurance policies.
Purchase a Comprehensive Plan
A comprehensive insurance plan will include umbrella liability and errors and omissions insurance.
- Umbrella liability provides additional coverage when the client exceeds limits to a policy.
- Errors and omissions insurance should include: legal defense costs, covered w2 employees and 1099 subcontractors, copyright and intellectual property infringement, personal injury and worldwide coverage for lawsuits brought in the US. Get a general liability insurance quote that includes these additions.
Protect Your Estate
Without liability insurance in place to protect your business and your personal assets, lawsuits against your business can easily liquidate your entire estate if the awards are high. Having enough of the right kind of insurance can protect your personal assets and your family's future.
- Lawsuits are costly. Even if you are ultimately found not to be at fault, you still need to front the cash for your defense and court fees, which can pull funds out of your business and your personal accounts. Your business’s cash cushion – and your kid’s college savings – can both be at risk.
Update to your facility
Most general liability business insurance providers offer checklists for business owners with recommendations for improving the safety of their business property.
- This helps you and your insurance providers alike to evaluate the overall soundness of your facility.
- Your insurance provider may recommend upgrades you should make to your facility. With these upgrades, you can qualify for better insurance rates. Without them, you may not be able to find a provider to cover you at all, so be sure to follow their recommendations.
Remember to get general liability insurance quotes from as many companies as possible to find the most competitive rate. If you're not totally satisfied with an insurance quote, keep shopping until you find the plan that's right for your business needs.