General liability insurance is a core coverage type for any small business insurance policy, but it’s only part of liability insurance the solution for the multitude of problems that could financially impact your company. You’ll want to add more coverage types to protect your company against other types of risks, such as fire, theft, vandalism and lost income.
A good way to get started is with a business owners policy (BOP). It bundles general liability insurance along with commercial property insurance and business interruption insurance (also known as business income insurance).
You can also add other types of business insurance to meet your company’s needs. For example, if you use a vehicle for work purposes, you can add commercial auto insurance.
What Does General Liability Insurance Cover?
General liability insurance protects a business from a variety of possible claims, including bodily injury, property damage, copyright infringement, reputational harm and advertising injury.
Bodily injury caused by a business is a common claim. If someone comes to your place of business and is injured, a general liability policy would cover their medical costs. A bodily injury claim could be something as simple as a fall by a customer at a store or office.
Property damage is another common liability claim. Your business may be legally responsible if a person’s property is damaged while at your business. Property damage claims could also include damage to a client’s home or other property if you are visiting them on business.
Copyright infringement claims come about if you are accused of using someone else’s work in your business ad or other business marketing without their permission.
Reputational harm can happen, for example, if you’re being interviewed by a news outlet and you say something about another company that hurts their business.
Advertising injury can happen if your business defames another person, business owner or company.
These types of liability claims are prevalent, so you’ll want to keep your business protected with the right insurance. For example, the average cost of a slip and fall claim is $20,000. And if you face a reputational harm lawsuit, you could be facing $50,000 in costs, according to The Hartford.
A good way to extend your business liability insurance is by purchasing a commercial umbrella insurance policy. This gives you an extra layer of protection from expensive lawsuits.
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