What is Commercial General Liability Insurance?
The General Liability Insurance protects businesses and their owners from “general” claims which involve bodily damages, property damages, and lawsuits relating to both of these. It’s the first policy usually purchased by small business owners because it’s often needed when signing client’s contracts and commercial leases. The General Insurance covers all expenses related to clients and customer’s injuries which happens within the vicinity of your property, damages you caused to the properties of others, and other advertising mistakes. It simply covers all the most common lawsuits which arise from daily business activities such as interacting with customers, renting of property, and relating with clients.
What does General Liability Insurance cover?
This form of Business Insurance takes care of third-party lawsuits. This refers to the lawsuits which are brought by non-employees such as clients, landlords, vendors, customers, and so on. Generally, it covers third-party lawsuits which are triggered by any of the following:
Damages to property: It covers all damages to someone else property which was caused by your activities or that of your employees while working for you. This includes a lawsuit filed by your landlord due to a fire outbreak at your office which destroyed all or part of his building.
Bodily Injuries: It covers all kind of lawsuits arising from bodily injuries sustained by a customer or client while at your premises. This includes a lawsuit filed by a client who slipped and broke a leg at your office.
Damage of Reputation: It covers lawsuits arising from defamation. This includes a lawsuit filed by a competitor because of a defamatory comment posted by you or your employees on social media platforms.
Infringement of Copyright: It covers lawsuits arising from using someone else idea without seeking his permission. This includes a lawsuit filed by a competitor because of the similarities in your marketing and advertising materials and theirs.
How can I save money on General Liability Insurance?
Depending to a large extent on the type of business, General Insurance can be pretty pricey. There are a couple of ways through which you can save money on your General Liability Insurance.
Avoid Overestimation: When estimating the gross receipts and payrolls for the upcoming year, many business owners overestimate owing to their high hopes and expectation from their businesses. These figures tend to increase the premium they pay because most policies” premiums are calculated based on the figures of the gross receipts and payrolls.
Ensure That You Are Properly Covered: Some business owners sacrifice their proper coverage for lower premiums. They end up having major claims which the little money saved from lower premiums cannot cover.
Package Your Policies Properly: When you package your General Liability Insurance with some other policies such as your Business Personal property, you get to enjoy a multi-policy discount.