But there is a third domain, another common source of small businesses being sued, that can only be covered by commercial general liability insurance.
Common Lawsuits General Liability Insurance Protects You From
General liability insurance is meant to protect your business from exorbitant (sometimes fatal) financial loss due to a third-party lawsuit.
Here are the 5 top types of lawsuits that a good general liability policy can protect you against:
1. Personal Injury Suits
Its not at all uncommon for a customer, or some other non-employee visiting your business premises, to suffer a slip and fall accident, a concussion, respiratory damage, or a host of other possible bodily injuries.
One of the key benefits of general liability policies is that they cover you against the medical bills, physical therapy and rehab costs, lost income and lost earning capacity, and legal fees and judgments that a 3rd-party personal injury caused by your business could incur.
Suddenly owing tens or hundreds of thousands of dollars due to a personal injury suit could seriously set back or even sink your small business. General liability can save it.
2. Property Damage Suits
The second key pillar of general liability coverage is protection against 3rd-party property damage lawsuits.
This kind of cover is especially helpful for companies that spend a lot of time at customer’s homes, where the chances of damaging a client’s property is relatively high. But the risk exists for all business types, and it’s wise to get yourself covered.
3. Defective Products
Some form and degree of product liability insurance is included in most general liability policies. This protects you in case a product you manufactured, distributed, or sold injures a consumer.
It your company is found negligent or in any way at fault (even partially) for the injury, it can be the basis of a hefty lawsuit. General liability insurance can cover the costs of unintentional injuries caused by defective products.
4. Advertising Errors
Depending on your profession, a suit over false advertising, copyright violations, or falsely claiming an endorsement might be a likely source of a lawsuit.
Of course, you do everything you can to avoid such errors, but the possibility of accidentally committing an advertising error or of being falsely accused of one is real enough that merits substantial insurance protection.
5. Reputational Harm
Another common basis for lawsuits against businesses is the infliction of “reputational harm.” This can be done through libel, slander, invasion or privacy, social media postings, illegal eviction of a tenant, or through many of the categories of advertising errors listed under #4 above.
Since the reputation of businesses and of individuals is often central to their financial viability, as well as their social integrity, it’s not surprising that lawsuits for reputational harm are so common – even if the definition of when and how badly a reputation has been harmed is somewhat nebulous.
To learn more about how general liability insurance can protect your business, or for a free no-obligation quote, contact Flagler County (FL) Insurance Agency today!