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General liability insurance is a type of insurance that can protect businesses from a variety of claims, including bodily injury, property damage, personal injury, and more. This type of insurance can help cover the costs of legal fees, settlements, and judgments if your business is sued. It can also help protect your business’s assets if you are found liable for damages. General liability insurance is sometimes also called “commercial general liability insurance” or “business liability insurance.”
There are a few things that general liability insurance does not cover, including professional liability, workers’ compensation, and product liability. If you need coverage for these types of risks, you will need to purchase a separate policy.
General liability insurance can be purchased as a standalone policy or as part of a business owner’s policy (BOP). A BOP is a type of insurance that bundles together several different types of coverage, including property insurance, business interruption insurance, and general liability insurance. This can be a convenient way to get all the coverage you need in one place.
Does my new company or LLC need a General Liability Policy?
If your business will have any interaction with customers, clients, or the general public, you should consider purchasing a general liability policy. This type of insurance can help protect your business from a variety of risks, including bodily injury, property damage, personal injury, and more.
If you are unsure whether your new company needs a general liability policy, you can speak to an insurance agent or broker for more information. They will be able to assess your specific needs and recommend the right type of coverage for your business.
What Does a General Liability Policy Protect You From?
A general liability policy can protect your business from a variety of risks, including:
- Â Bodily injury: This can cover the costs of medical expenses if someone is injured on your property or as a result of your business operations.
- Â Property damage: This can cover the cost to repair or replace damaged property, such as a customer’s car that is damaged in your parking lot.
- Â Personal injury: This can cover the cost of legal fees and settlements if you are sued for defamation, libel, or slander.
- Â Product liability: This can cover the cost of legal fees and settlements if you are sued because a product you sold caused injury or property damage.
What Does General Liability Insurance Not Cover?
There are a few things that general liability insurance does not cover, including:
- Â Professional liability: This type of insurance is also known as “errors and omissions” insurance. It can protect you from lawsuits alleging that you made a mistake in your professional services.
- Â Workers’ compensation: This type of insurance can cover the cost of medical expenses and lost wages if an employee is injured on the job.
- Â Product liability: This type of insurance can protect you from lawsuits alleging that a product you sold caused injury or property damage.
If you need coverage for any of these risks, you will need to purchase a separate policy.
How Much Does General Liability Insurance Cost?
The cost of general liability insurance depends on a variety of factors, including the size and type of your business, the location of your business, your claims history, and more. Generally, businesses can expect to pay $500 to $5,000 per year for general liability insurance.
How Can You Get General Liability Insurance?
You can get general liability insurance through an insurance agent or broker. Be sure to compare quotes from a few different insurers to get the best coverage for your business. You can also purchase a policy online from a variety of insurers.
If you are a business owner, you may be able to get general liability insurance through a business owner’s policy (BOP). A BOP is a type of insurance that bundles together several different types of coverage, including property insurance, business interruption insurance, and general liability insurance. This can be a convenient way to get all the coverage you need in one place.
Frequently Asked Questions:
What is a Certificate of Insurance?
A Certificate of Insurance is a document that provides proof that you have insurance coverage. It can be used to show potential customers, landlords, and others that you are insured. The Certificate of Insurance will list the types and limits of coverage you have.
What is an insurance agent?
An insurance agent is a person who represents an insurance company. They can help you purchase insurance, file claims, and more.
What is an insurance broker?
An insurance broker is a person who represents you, the customer. They will work with multiple insurance companies to find the best coverage for your needs.
What is a business owner’s policy?
A business owner’s policy (BOP) is a type of insurance that bundles together several different types of coverage, including property insurance, business interruption insurance, and general liability insurance. This can be a convenient way to get all the coverage you need in one place.
When Should I Ask for a Certificate of Insurance?
You should ask for a Certificate of Insurance when you are:
- Renting office or retail space
- Â Hiring contractors or other service providers
- Applying for a business loan
- Â Hosting a special event
Asking for a Certificate of Insurance is a way to protect yourself and your business. It can help you avoid working with businesses that are not properly insured.
What Does a Certificate of Insurance Contain?
A Certificate of Insurance typically contains the following information:
- Â name of the insurance company
- Â policy number
- Â types of coverage
- Â limits of coverage
- Â the effective date of the policy
- Â the expiration date of the policy
- Â name and contact information of the insurance agent or broker
- e name of the insured (the business)
A Certificate of Insurance does not replace an insurance policy. It is simply a document that provides proof that you have insurance coverage. You should still keep your insurance policy in a safe place. If you have any questions about your coverage, you should contact your insurance agent or broker.
What if I Don’t Have Insurance?
If you don’t have insurance, you could be held responsible for any damages or injuries that occur. This could include medical bills, property damage, lost wages, and more. You could also be sued by the person who was injured or whose property was damaged. If you are found to be at fault, you could be ordered to pay damages to the other party. In some cases, you could also be fined or jailed. Not having insurance is a risk that is not worth taking.
What is a Valid Certificate of Insurance?
A Valid Certificate of Insurance must be signed by an authorized representative of the insurance company. It must also list the types and limits of coverage you have. The Certificate of Insurance should be dated within the past 12 months. If you are unsure if a Certificate of Insurance is valid, you should contact the insurance company to verify.
How Long Does a Certificate of Insurance Last?
A Certificate of Insurance is typically valid for 12 months from the date it is issued. After that, it is up to the insurance company to renew the policy. You should always check the expiration date on your Certificate of Insurance to make sure it is still valid.
What Happens if My Insurance Policy Expires?
If your insurance policy expires, you will no longer have coverage. This means you will be responsible for any damages or injuries that occur. You could also be sued by the person who was injured or whose property was damaged. If you are found to be at fault, you could be ordered to pay damages to the other party. In some cases, you could also be fined or jailed. Not having insurance is a risk that is not worth taking.
How Much Does General Liability Insurance Cost?
The cost of General Liability Insurance depends on a number of factors, including the size and type of your business, your location, and your industry. However, the average cost of General Liability Insurance is $750 per year but varies depending on location, types of business and other factors
Is General Liability Insurance Required?
General Liability Insurance is not required by law. However, many businesses are required to have it by their landlords, contractors, or clients. In some cases, it may also be required in order to get a business loan.
Having General Liability Insurance is a smart way to protect your business. It can help you avoid financial ruin if something goes wrong.
If you have any questions about General Liability Insurance, please contact your insurance agent or broker. General liability insurance is an important type of insurance for businesses. It can help protect your business from a variety of risks, including bodily injury, property damage, personal injury, and more. If you need coverage for any of these risks, you will need to purchase a separate policy. You can get general liability insurance through an insurance agent or broker. Be sure to compare quotes from a few different insurers to get the best coverage for your business.
This article is for informational purposes only and does not replace professional advice. Please consult with your insurance agent or broker to ensure you have the coverage you need.