Why Does Your Business Need General Liability Insurance?
General liability insurance Maple Grove MN protects your business and its assets against most of the common lawsuits and any obligations that may arise thereof. The growing popularity of general liability insurance can be mainly attributed to its wide spectrum of coverage. For instance, when a client gets hurt on the business’ property or when your employees cause injury or property damages. It also covers the cost of legal defense and any award or settlement should you be sued successfully. This includes non-monetary loss suffered by the injured party, compensatory damages and punitive damages.
What does general liability insurance cover?
This coverage protects your Maple Grove business against four main claim categories:
- Property damage:
In case your employees cause damage to property such as land, cars, homes and any other property of relative value, you might be held responsible for its cost. However, general liability insurance will provide the coverage you need up to the policy’s limit of liability.
- Bodily injury
If your client or another party suffers bodily injury that is caused either directly or indirectly by the business, this coverage will cover the medical expenses and other obligations brought about by such lawsuits.
- Personal injury
This category encompasses libel, slander, mental anguish, and lost wages. Personal injury claims can also include emotional and psychological injury resulting from deliberate acts or neglect by the defendant.
- Advertising injury
Although this is one of the rarest claims to actually be filed, it is defined as any damage caused by copyright infringement or another party’s use of libel or slander against the plaintiff. However, advertising injury usually involves other businesses instead of individuals.
Why does your company need this type of insurance?
Even if you think it is unlikely for your business to face any claims, it is important to remember that we are living in a litigious environment and good insurance coverage is a wise investment that offers protection against frivolous claims. Moreover, it does not cost much and the premiums primarily depend on your coverage needs and line of business. You should consider this policy if;
- You interact face to face with your clients
- Have access to the client’s equipment and assets
- Represent the client’s business
- Use any third party locations for business related activities
Even though you consider yourself a low risk business, it’s important to remember that accidents happen and you can never be completely in control of all situations. There are various unforeseen problems that might result in costly lawsuits including bogus claims. General liability insurance Maple Grove MN protects your business by helping you cover such claims.
Determining your coverage needs
In a bid to ensure that your insurance coverage meets your needs, you can purchase other forms of business liability insurance along with the general liability cover.
- Professional Liability Insurance: This is coverage for claims against businesses that provide personal and professional services
- Business Owners Policy (Commonly known as BOP): Enhanced insurance cover that combines property insurance with general liability insurance.
Your general liability coverage depends on two main factors; the type of business you are running and the perceived risk. For instance, a building contractor needs more coverage than a web consultant or designer.