There is a long list of insurance products that service providers will recommend for your micro-business, but general liability coverage always tops it and is often considered a must-have.
General liability insurance coverage, at times, referred to as liability insurance coverage or comprehensive general liability is designed to protect a company in case of a third-party claim that directly links to the business operation. No doubt, it is one of the policies all company owners need regardless of their industry.
So don’t be asking if your small business will need to acquire general liability insurance coverage because most companies actually do. The big question is; how much does it cost and what does general liability insurance cover?
Here is an informative guide through this comprehensive insurance package that turns out to be important for every merchant.
How does Liability Insurance Cover your Micro-businesses?
Generally, when a third party takes your business to court for bodily injuries or property damage caused during company operations, the need for general liability comes in. This policy is meant to cover medical expenses of a customer that suffers head injuries due to falling boxes at your shop or replace a client’s smartphone that your staff accidentally washes with coffee.
Sometimes, this plan covers the company as a tenant in case of damage to the rental property where your business premise stands. Moreover, it can help cover a business whose marketing is considered harmful, malicious or an infringement of copyright.
General liability entails covering a firm against claims resulting from your startup’s operation, so you don’t risk losing your expensive assets in a court case.
Apart from bodily injury and damage to third-party property, your general liability insurance policy should cover claims of:
- Personal injury
The coverage should protect you against slander or libel claims for which your company is legally liable.
- Advertising injury
The insurance should cover your micro-business if your advertisement and marketing materials accidentally breach a third party’s copyright or business slogan.
- Medical expenses
If a customer is injured, the coverage should pay the medical bills.
- Actions of both full-time and part-time employees
The general coverage can also protect operation-related actions of both full-time and part-time employees.
- Defense Costs
If a third party files a case against your company, this insurance policy should take care of all defense costs.
- Offshore coverage
Depending on your coverage or requests due to the nature of your operations, a general liability product can cover damages that occur across the border.
Lastly, if you are lucky (and for a small extra fee) you can find an all-inclusive provider who will also allow you to enjoy;
- Supplemental coverage
This category covers;
- All legal defense costs.
- Compensation for losses suffered, and reasonable expenses incurred during the period of investigation of the lawsuit against your business.
- It also covers the interests on damage awards.
Shopping with everything you need to know at your fingertips makes the experience enjoyable and easier. Now you know the fundamentals you can cover under the comprehensive policy. Use this knowledge wisely when picking a product.