General liability insurance protects against lawsuits brought against your business by third parties. It is a type of third party insurance - where a claim is made against an insurance policy by an entity other than the insured.
In simple terms, a general liability insurance policy covers your business against claims made by other people or businesses for personal/bodily injuries or property damage that your business caused.Get A Quote
Why Is General Liability Insurance Important?
Without general liability insurance, your business will have to pay for any award a court may give in a liability lawsuit against you. The financial cost of the lawsuit may bankrupt your business.
Even though general liability insurance is advised for every type of business that has physical contact with clients or the general public, there are some types of businesses where it is critical. Examples are building contractors whose work involves heavy equipment whose failure or improper operation can cause serious injuries to people and major property damage.
General liability insurance may be offered as part of a Business Owners Policy. But a contractor that does not own or lease any buildings may choose to buy only the general liability coverage and opt out of commercial property coverage and others. The general advice, though, is to make sure you have insurance coverage that matches your level of exposure.Get A Quote
Some clients may demand liability coverage as a condition
General liability insurance is not mandated by law. But that does not stop your clients from demanding proof of it as a precondition for doing business with you.
If, for example, you provide services that come with a heightened risk of accidents that cause injuries and property damage - like construction, clients will require that you carry liability coverage. So, without liability coverage, you may be unable to get clients.
Contact our business insurance experts here for a consultation on the different business liability coverages available.