No small business is immune to financial risks, and one of these might be the risk of a lawsuit lodged by a customer or other party who blames the business for harm they sustained. At this point, you might have a legal obligation to compensate someone affected by your mistakes. However, you shouldn’t have to put your company’s financial security on the line by trying to meet this obligation.
A critical component of your business insurance, known as general liability insurance, will be there to assist the business if its mistakes harm someone else. Coverage is designed to assist both the business and the affected party, so that neither party suffers undue financial hardship because of an accident. Here’s how it works.
What Does General Liability Insurance Do for You?
Mistakes happen in every business, but if a mistake harms your customers, you have to be prepared to respond. Still, this will often lead to significant financial ramifications, which can put a disproportionately high strain on smaller businesses. General liability insurance is the coverage that will help you respond.
Qualifying third-party losses covered by general liability insurance might range from slip-and-fall accidents in a bathroom to injuries caused by one of your products. There are numerous ways that it can be of assistance to you:
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It pays for third-party medical bills, lost time at work, pain and suffering claims, and much more so you do not have to do so out of pocket.
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You have legal assistance available should this case go to court as a result of a liability lawsuit.
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It can help to restore your reputation if your business suffers false accusations in such claims.
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If a court deems you responsible for a liability claim, your policy covers the settlement.
If you are still unsure if your company is really facing any liability risks, think again. Countless people file liability claims against a business every year, and their claims might allege:
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Injuries while they are on the premises
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Product failures
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Property damage to their belongings
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Illness sustained as a result of the business’s negligence
No matter what you do or what industry you are a part of your business insurance agent will be there to guide you through the process of getting appropriate general liability insurance. They will look within your company, weigh your industry-specific liabilities and determine the exact value of coverage you need. They can also assist you in choosing the policy that is most affordable for you and aid you in choosing supplemental liability coverage that expands your benefits appropriately.
General liability insurance is one of the most necessary forms of business insurance. It is also one of the easiest policies to purchase. Improving your business’s risk profile is critical, and these products can help.