General liability insurance helps cover costly claims that can come up during normal business operations. If you don’t have coverage, you’d have to pay for these out of pocket.
A general liability insurance policy can help cover claims that your business caused:
Third-party bodily injury: If a customer gets hurt after slipping and falling in your store, they can sue your business. Your insurance policy includes bodily injury liability coverage, so it can help pay for their medical bills.
Third-party property damage: If you or your employees work at a client’s house, your business faces a risk of causing property damage. Property damage liability coverage can help pay for repair or replacement costs if your business damages someone else’s belongings.
Reputational harm: Someone can sue your business for libel or slander because of something you or your employees said. If this happens, general liability insurance can help cover your legal costs to defend your business.
Advertising injury: Your business can get sued for copyright infringement. For example, a photographer can sue you if you use their photo in your ads without permission.
Why Do You Need General Liability Insurance?
Liability claims aren’t uncommon and can get expensive. Without general liability insurance, your business would have to pay for these costs out of pocket and can put you out of business.
You may also need general liability insurance before you can work with other businesses. Some companies may ask you to provide proof of insurance, also known as a certificate of insurance.
