A Business Necessity

Every business, regardless of size or industry, faces risks. From customer injuries to accidental property damage, unforeseen events can lead to costly lawsuits and settlements. That’s where General Liability Insurance (GLI) comes in—a crucial safeguard that protects businesses from financial losses due to third-party claims.

What is General Liability Insurance?

General Liability Insurance, often referred to as business liability insurance, provides coverage against claims arising from everyday business operations. It typically includes protection for:

• Bodily Injury: Covers medical expenses and legal fees if someone is injured on your business premises or due to your business operations.
• Property Damage: Pays for damages caused to someone else’s property by your business activities.
• Personal and Advertising Injury: Covers legal claims related to defamation, copyright infringement, or misleading advertising.
• Legal Costs: Helps cover attorney fees, settlements, or court-ordered judgments in liability lawsuits.

Why Do Businesses Need General Liability Insurance?

Many business owners assume they’re immune to lawsuits, but legal claims can arise from minor mishaps. Here’s why securing GLI is a smart move:

• Financial Protection: Even a small legal claim can result in significant expenses. Without coverage, businesses might struggle to recover from legal fees and settlements.
• Client & Vendor Requirements: Many clients, landlords, and vendors require proof of insurance before entering contracts or leasing space.
• Credibility & Trust: Holding liability insurance reassures customers and partners that your business is responsible and prepared for unforeseen risks.

Who Needs General Liability Insurance?

While nearly all businesses benefit from GLI, it’s particularly essential for:

• Small Business Owners: Retail stores, coffee shops, contractors, and consultants face daily customer interactions that pose liability risks.
• Service Providers: Professionals like landscapers, event planners, and personal trainers may unintentionally cause client injuries or property damage.
• E-Commerce and Online Businesses: Even online sellers can be held liable for defective products, misleading advertisements, or privacy violations.

What’s Typically Not Covered?

While GLI covers a broad range of risks, certain scenarios require additional policies:

• Employee Injuries: Workers’ compensation insurance is needed for on-the-job employee injuries.
• Professional Errors: For businesses offering advice or services, professional liability insurance is necessary to cover claims of negligence or mistakes.
• Intentional Acts: Fraud, illegal activities, and deliberate harm are excluded from coverage.

How Much Does General Liability Insurance Cost?

The cost of GLI varies based on several factors, including:

• Business size and industry risk level
• Coverage limits and deductibles
• Business location
• Claims history

On average, small businesses pay between $500 and $3,000 annually for a standard policy. Higher-risk industries, such as construction or manufacturing, may face higher premiums.

How to Choose the Right General Liability Policy

When selecting a GLI policy, consider these key factors:

• Coverage Limits: Ensure your policy provides enough coverage for potential claims.
• Policy Exclusions: Understand what’s not covered and whether you need additional insurance.
• Insurance Provider Reputation: Work with a reputable insurer known for fair claims processing and strong customer support.

General Liability Insurance isn’t just a business expense—it’s a necessary safety net that protects your company from unpredictable financial losses. Whether you’re a startup, an established business, or a freelancer, securing GLI ensures peace of mind and safeguards your hard-earned success.

By investing in the right coverage, businesses can operate with confidence, knowing they’re protected against the unexpected challenges of running a business. Let Insurance Way direct you to the right policy that covers your business and gives you peace of mind.