Insurance policies are like a firewall of protection between you and your business and financial bankruptcy. If a legal claim is filed against you or your business and you are found liable, you could end up in the poor house if you don?t have a general liability insurance policy. If you are a business owner and don?t already have a general liability insurance policy, you need to take the time to find out what it is and why you need it. Who needs general liability insurance: General liability insurance is a must for most business owners. For those in industries with higher safety risks and factors, such as construction companies, general liability insurance is a necessary part of doing business. All businesses are at risk for lawsuits and claims due to the nature of running a business. Accidents happen, whether you are negligent or no. Having a liability insurance policy adds a critical layer of protection between your assets, i.e. your business, and the claims that are laid against you. How much liability insurance coverage do I need? How much commercial liability insurance coverage you need depends on the nature and size of your business. Most general liability coverage is around $1,000,000, but you may need more or less depending on what types of claims you would anticipate being made. Medical bills and property damage can quickly add up in the case of an accident, and you want to make sure that your policy covers it all so you won?t be left paying out of pocket. Should I have an umbrella policy with my general liability insurance? An umbrella policy is an additional layer of protection that you can choose to add to your general liability insurance company. Whether or not you need one depends on the nature of your business. The umbrella policy will cover you above the limits of your general liability coverage. Its best to talk to your insurance agent as to what they would recommend in terms of an additional umbrella policy to your existing general liability policy. What kinds of claims does general liability cover? General liability insurance covers property damage and bodily injury. Your general liability insurance policy will cover legal fees and medical fees associated with these types of claims, and pay for the building of a legal defense if it is needed. It will also cover advertising injury, claims made from competitor that your business?s advertisements made false or slanderous claims, causing them a loss of profits. Does general liability coverage cover my business even when I am not legally responsible? Another benefit of general liability is that it will cover medical bills and property damage to injured parties in order to forgo the need for a legal claim to be made. This can end up saving your business a lot of money, time and effort in having to go through a legal process. General liable insurance can help to stop a lawsuit before it even begins.
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