The majority of small businesses need this kind of coverage, particularly if they rent or own office or commercial property. In addition, many client contracts include provisions for general liability insurance coverage.
Even if none of these situations applies to you, small companies that interact with clients and customers on a regular basis often benefit from commercial general liability insurance, commonly known as a CGL coverage. If a client or rival sues your firm, this insurance coverage may help keep your business’s financial stability intact.
Because general liability insurance offers such critical protection, the vast majority of small business owners get the policy as soon as they establish their company.
What is covered by business general liability insurance, and what does it cost?
General liability insurance protects you against common liability claims brought against you by other parties (people outside your business).
If someone sues you for physical injury, property damage, or advertising harm, your commercial general liability insurance will pay the expenses of your legal defence. Your CGL insurance may cover anything from the cost of hiring an attorney to the payment of court-ordered judgments and settlements.
Is general liability insurance mandated by the government?
In most cases, no, although certain states, such as California, may require it in specific sectors, such as construction. The fact is that, although general liability insurance is not usually needed by law, your landlord, mortgage company, or clients will almost certainly demand it from you.
It is possible that a landlord or customer may request that your company provide a certificate of insurance as evidence of your general liability insurance coverage. This document certifies that your company is capable of dealing with any personal injury or property damage claims that may arise.
And, perhaps more significantly, the certificate provides your property management, bank, or client with the assurance that they will not be liable for the expenses of a lawsuit brought against your business.
What is the best way to get evidence of general liability insurance?
If you get commercial general liability insurance with Insureon, you can often obtain proof of insurance online the same day that you begin a company insurance policy.
New clients may have to wait several weeks for a certificate of general liability insurance to be sent to them by traditional insurance brokers. A company owner who requires quick evidence of insurance in order to sign a pending contract may run into difficulties in this situation.
Is it necessary to have general liability insurance for independent contractors?
Independent contractors, like any other small company owner, may be sued and held responsible for customer accidents, customer property damage, and advertising harm, among other things.
Despite the fact that contractors who do not have a physical site or costly equipment are unlikely to need a company owner’s policy or commercial property insurance, they will benefit from general liability insurance.
Instead of purchasing general liability insurance, you may ask your customers to add you as an extra insured to their existing policies if that is what you want. This will protect you for as long as you are employed by the customer who is providing the insurance. Keep in mind that if your customers include you on their general liability insurance plans, they may have to pay a higher insurance price. In addition, your coverage will cease when the contract expires.