What Is General Liability Insurance and Why Is It Essential for Businesses?

Businesses of all sizes and sectors must account for various risks and exposures. Even amid daily operations in a relatively low-risk industry, you cannot afford to underestimate the financial consequences of accidents. Incidents affecting people outside your company could be particularly impactful, as costly and public lawsuits could emerge, potentially incurring devastating fiscal and reputational harm. That’s why the team at Dan Smith Insurance Agency Inc. strives to help businesses understand and secure the right general liability insurance.

What Is General Liability Insurance?

Also known as commercial general liability insurance, this type of coverage is a staple of most organizations’ risk management and loss control efforts. As its name suggests, general liability insurance can provide financial protection from many common risks and exposures relevant to companies regardless of unique circumstances.

Specifically, these policies can help your company limit out-of-pocket repercussions when responding to the following types of incidents:

• Bodily injuries—If someone suffers bodily harm in an incident for which your business is to blame, your policy could help pay for their medical bills and other financial losses.

• Property damage—If your business causes an incident that damages someone else’s property, your insurance could assist with repair or replacement costs.

• Personal and advertising injuries—If your business inflicts personal injuries (e.g., slander, libel or invasion of privacy), your general liability coverage could limit out-of-pocket losses.

In addition to compensating affected parties, your policy may also help with legal expenses arising from lawsuits, such as attorney fees.

Why Is Coverage Important?

Consider the many circumstances in which the aforementioned losses may occur:

• If a customer visits your business and slips on a wet surface, they could suffer injuries and sue you for liability.

• One of your employees could accidentally leave a sink in the bathroom running, potentially leading to water damage for a neighboring tenant for which you would be liable.

• Your marketing or social media coordinator could potentially make libelous statements about a competitor, possibly leading to a costly lawsuit.

We’re Here to Help

At Dan Smith Insurance Agency Inc., we’re well-versed in the world of general liability insurance. Contact us today to ensure your business is covered.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.