General Liability coverage will protect your business from claims brought against your business for property damage, bodily injury and/or product and advertising injury. For example, if a customer slips on your property injuries suffered could result in medical expenses or even being sued. General liability insurance will cover the cost of legal defense and any settlement issued to that individual.
Accidents and misunderstandings occur at any moment and a risk for your business to suffer a loss. The coverage you need will depend on your type of business and location of your business along with perceived risks. Purchasing insurance is a strong investment that will cost less than thousands of dollars if fighting a case in court.
As other insurance plans, your general liability policy outlines a maximum amount of coverage that your insurance will pay out against a claim. How general liability works, for example if injuries to a client reach $250,000 in medical costs plus $100,000 in additional legal fees, but your coverage is $300,000 you are responsible to pay the difference. If your business type is on a higher risk you can also opt for excess insurance to increase your coverage limits.
General Liability Coverage Includes:
- Bodily Injury – pays medical expenses or legal expenses if sued by a client injured on your property
- Property Damage – pays to repair or replace for client property lost or damaged on your premises
- Product Liability – helps to pay for legal expenses when sued over a product’s design defects, manufacturing, or marketing defects
- Advertising Injury Protection – pays for legal defense or judgment costs when sued over harm your marketing or advertising causes to an individual’s reputation, brand, or market share.
Coverage Does Not Include
- Professional errors
- Employee injuries
- Damage to your business property
- Employee discrimination lawsuits
- Fraud
Consider Other Business Insurance Policies
General Liability insurance purchased on its own or included as part of a Business Owners Policy bundles liability and property coverage into one policy. Your liability policy will cover inventory, equipment, or supplies not kept at home or at other offsite locations you may purchase basic coverage. Liability coverage will protect you if a client or employee sues you for negligence, personal injury or faulty product. You can extend the coverage on your business for any specific needs. These additional business coverage include:
- Worker’s Compensation Insurance – Texas does not require worker’s compensation. Worker’s compensation provides benefits to employees if injured in work-related activities and illnesses.
- Commercial Auto Insurance – consider adding commercial auto to your policy if you or employees use a vehicle for work-related duties. Commercial auto insurance will cover costs from a work-related loss as a regular auto insurance may not cover.
- Business Income Insurance – coverage helps to replace lost income when you are unable to conduct business due to a loss.
Contact our offices for more information on commercial policies for your business.