FRIDAY, JANUARY 29, 2021
 General liability insurance is one of the many useful insurance policies that is not typically required by any state or federal law. However, there are other circumstances where you might need general liability insurance.
To Work in Certain Industries
In some cases, you may have to purchase and carry general liability insurance if you have to work in a certain industry. Many industries come with a certain set of requirements that business must meet such as size, workforce, licenses, permits and insurance.
This could include real estate agents, retail stores, restaurants, independent contractors and more.
If you deal with people on a daily basis throughout your business’ operations, you will likely need general liability insurance. In relation, you may also need general liability insurance to obtain certain licenses to operate. Be sure to check your industry’s requirements when looking to start a business or get a license in a certain field, as you may need general liability and other insurance policies such as professional liability and liquor liability.
Who Needs General Liability Insurance?
Even without a requirement, essentially every business needs general liability insurance. Practically every business faces claims with it comes to general liability accidents. This includes businesses such as:
Many of these are due to having a physical location or physically interacting with clients. If you invite customers into your restaurant and someone is injured, for example, general liability insurance can help with their medical bills as well as cover you in case of a lawsuit.
What Does General Liability Insurance Cover?
General liability insurance is designed to cover liability accidents your business may face day to day. This includes:
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Bodily Injury Liability: Bodily injury liability insurance covers injuries that someone may face on your business’ property. It can cover medical bills and legal fees in case of a related lawsuit.
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Property Damage Liability: Property damage liability covers damage to third party property as a result of your business’ everyday activities.
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Personal and Advertising Injury: Personal and advertising injury covers claims against your business concerning libel, slander, malicious persecution, copyright infringement and more.
General liability insurance can help protect you against lawsuit costs such as defense costs, court fees and settlement expenses.
What Does General Liability Insurance Not Cover?
Unfortunately, a basic general liability insurance policy will not cover everything. General liability only covers non-professional negligent accidents. This means liability issues that occur unrelated to a professional service.
Be sure to ask your insurance agent about additional liability coverage your business could use, such as:
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Professional Liability: Professional liability insurance covers claims regarding professional negligence. If your business or employees offer a specialized or professional service, you will need professional liability insurance. This may be required for you to receive certain professional licenses.
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Umbrella Liability: Umbrella liability insurance serves to fill in the gaps left by your other liability insurance policies. For example, if your general liability insurance policy reaches its limit of $1 million for a single claim, umbrella liability insurance can step in to help pay the remaining balance.
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Liquor Liability: Liquor liability insurance covers claims against the business concerning the selling or manufacturing of alcohol. If someone purchases alcohol from your gas station and gets into a fight which causes injuries, for example, liquor liability insurance can protect you against a related lawsuit. This insurance is often required for businesses that plan on selling or manufacturing alcohol or to obtain a liquor license.
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Directors and Officers Insurance: Directors and officers insurance (D&O insurance) covers key employees of the business in case of a claim regarding their activities on a board of directors or as a representative of the business. This insurance can cover claims such as fraud, misrepresentation, mismanagement and more. This insurance often comes with Employment Practices Liability (EPLI) which covers claims regarding discrimination, sexual harassment, mismanagement of employee benefits, wrongful firing or hiring and more.
How Much is General Liability Insurance?
The cost of general liability insurance varies depending on several factors including your location, industry, claims history, coverage limits, deductible and other factors.
Ask an insurance agent today about insuring your business with the most reliable general liability insurance policy possible. No two businesses are the same and you will need a policy tailored for your business.
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