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Who Should Carry General Liability Insurance?

Who Should Carry General Liability Insurance?
Being in business brings with it a host of worthwhile rewards, such as putting your creativity to work, contributing something valuable to society, being your own boss, and being financially secure.
But the fact is, there are many inherent risks that accompany entrepreneurship as well – not least among these is the risk of being held liable for costly injuries and/or property damage that could cause a serious setback to your company.

That’s why business men and women in Florida typically choose to protect themselves against the risk of a potentially business-ending lawsuit via general liability insurance.

What Does Commercial General Liability Cover?
Standard commercial general liability insurance includes four basic coverage areas:

  1. Bodily injury or property damage liability. This is the basic idea of general liability. It will pay for an injury to a third party or damage to a third party’s property when either is caused by your company or your on-the-job employees. It doesn’t cover bodily injuries to your employees themselves since that is taken care of by workers’ compensation insurance.
  2. Medical payments. This is like the bodily injury liability mentioned above, but it differs slightly. Medical payments will cover relatively minor injuries to third parties that occur on your company premises or in relation to your business operations – even though you are not taken to court and held liable. Thus, medical payments helps you avoid going to court in certain situations.
  3. Tenant liability (damage to rental property). If you rent business property, your landlord might be responsible for some liabilities. But you could still be held liable for others. In particular, tenant liability coverage comes into play if your company is held liable for damage to rental property.
  4. Advertising errors & reputational harm. While you get more coverage along this line under professional liability insurance, the two are not identical, even if they slightly overlap at times. For unintentional harm done to someone else’s reputation due to libel/slander or for accidental violations of advertising rules, this element of general liability protects you in a complex legal world.

Who Should Get A General Liability Insurance Policy?
Let’s face it, the four coverage areas mentioned above are all too likely to become an issue at some point in the life of any business, small or large. Every company could use at least a basic general liability policy. Nonetheless, we can name several situations where this kind of insurance is especially necessary:

  • If you have a business center frequented by customers and/or other third parties, the risk of a bodily injury suit following an on-site accident is too high to not carry general liability.
  • Does your business involve employees entering the homes of customers to make installations or complete projects? This involves increased risk of damaging a customer’s property.
  • Do you rent your business location or other property for warehouse use or other purposes? The tenants’ liability element of general liability could end up saving you a lot of money.
  • If your business engages in extensive advertising or social media marketing endeavors, you would do well to protect yourself with coverage for advertising errors and reputational harm.
  • Certain industries, like construction, landscaping, legal practices, consultation services, and cable or Internet installation are particularly vulnerable to lawsuits and should keep themselves fully covered.

The cost of a lawsuit can devastate small businesses, making it virtually essential to buy general liability insurance. Don’t put your business at risk. Contact Flagler County Insurance Agency today to learn more.