Q: What is commercial general liability insurance?
A: Commercial general liability insurance is another name for business liability insurance. It is a necessary policy for most businesses. It covers a wide range of potential issues, including injuries to people other than your employees who enter your store or workplace. It also covers damage that may occur to their property when they enter your store or office.
It also protects you against any lawsuits that might come your way should one of your ads cause harm to a competitor. This coverage includes any claims of libel or slander.
In all, this type of coverage is necessary for many businesses, as it provides protection and coverage against many possible issues.
Q: Who needs business liability insurance?
A: Nearly all businesses, regardless of industry, should have some level of business liability insurance. This can cover your business in a number of different scenarios, including if a customer is injured inside your store or office or if your products or service cause bodily harm to someone.
All businesses can benefit from that extra layer of protection to help cover defense fees or potential judgments. Like other types of insurance, general liability insurance is something you hope you never have to use. However, if you don't have it and do need it for some reason, you could put your business in serious jeopardy.
Q: How much general liability insurance coverage do you need?
A: This depends a lot on the type of business you have. Insurance providers offer a range of coverage amounts. Coverage can range from $100,000 to as much as $2 million for one instance and $4 million for all instances. Many providers offer umbrella policies that can increase that amount to as much as $10 million.
You need to take a number of factors into account to determine how much coverage you need from your insurance policy. Your industry, location, revenue, number of daily visitors and type of workplace (e.g., a retail outlet, office or manufacturing plant) will help you determine the right level of coverage for your business.
Q: Do you need business insurance for an LLC?
A: While your personal assets may be protected if you own an LLC, you still need business insurance, especially general liability coverage.
Even though a potential lawsuit against your business may spare your personal assets if you have an LLC business structure, you are still putting your business in serious risk if you don't have business insurance. An LLC faces much of the same dangers as businesses with other structures, so there is no reason not to protect it with the proper insurance policies.
Q: How much does general liability insurance cost?
A: Similarly to the amount of coverage you need, the cost of general liability insurance depends greatly on the type of business you have. Your company's risk exposure, size, building construction, requested coverage amount, geographical location and number of employees, among other things, all factor into the rate you'll pay for liability insurance.
Many insurance providers offer online quote options, meaning you can fill out some information about your business on their websites and receive quotes for your insurance instantly. This is an easy way to shop around for your insurance. When filling out these forms on some insurers' websites, we found prices ranging from about $450 to $700 per year for liability coverage of $1 million for a retail store.
Q: Do you really need business insurance?
A: The quick and easy answer to this question is yes. Besides the fact that it protects your business from various claims that may come your way, some types of insurance are required by law.
Specifically, if you are hiring employees, many states require you to have workers' compensation insurance. Besides that, it really comes down to choosing the insurance policies that are right for your business. At a minimum, it is recommended that all business carry some liability insurance as well as property insurance.