Accidents happen every day. Even the most safe operations can find themselves wrapped up in costly lawsuits because of an accident. Without the proper insurance, a business that is held responsible for physical injury, personal injury, advertising injury, or property damage, may be forced to shut down. General liability insurance gives peace of mind to business owners that an unforeseen accident won’t put their company out of business.
General liability insurance provides coverage for accidents or damages that businesses become legally responsible for. These kinds of accidents could include:
In addition to coverage for actual injury or damages caused by a business the General liability policy also provides coverage for Defense costs. When a liability suit is brought against a business, the General liability insurance company provides defense, regardless of who is at fault. Attorney’s fees could be hundreds of dollars per hour. Without coverage for defense costs a company could be forced to shut down because it simply cannot afford to defend itself in court.
How Much Coverage Does a Business Need?
How much coverage a business needs can be very subjective. A business owner must ask themselves several questions:
Ultimately, the amount of coverage a business decides to purchase is up to the business and its legal counsel.