General liability insurance is a widely held insurance policy by most businesses. It provides coverage for common business risks such as customer property damage, customer injury, and advertising injury. This insurance safeguards your small business by mitigating the high costs associated with lawsuits and helping you qualify for leases and contracts. Today, we, at Signet Insurance Group aim to discuss the fundamentals of general liability insurance.
Importance of Small Business General Liability Insurance
General liability insurance for small businesses is significant, especially for those who rent or own an office or commercial space. It is often a requirement for client contracts and is beneficial for small businesses that directly engage with clients and customers, even if it’s not mandatory. This insurance policy ensures the financial stability of your company if you face lawsuits from customers or competitors. Most small business owners prioritize purchasing this policy at the start of their business due to its vital coverage.
Basic Coverage Under Commercial General Liability Insurance
Commercial general liability insurance covers a range of liability claims from third parties, such as individuals outside your business. It includes bodily injury, property damage, and advertising injury. This insurance bears the costs of legal defense, including lawyer fees, court-ordered judgments, and settlements.
Does Every Business Need General Liability Insurance?
If your business meets any of the following criteria, obtaining general liability coverage becomes essential:
– Working closely with customers or clients
– Renting or owning commercial property
– Operating a business location open to the public
– Handling client property
You are Not Required By Law to Purchase General Liability Insurance
Although general liability insurance is not always legally mandated, certain industries such as construction may require it by state law. However, your mortgage company, landlord, or clients will likely request general liability insurance as a prerequisite. A certificate of insurance acts as proof of coverage, offering peace of mind to your landlord, client, or bank, knowing they won’t be burdened with lawsuit expenses against your company.
How to Protect Your Business with Commercial General Liability Insurance
General liability insurance plays a crucial role in protecting your business by covering legal fees associated with third-party lawsuits. Here are a few common examples demonstrating how this coverage safeguards home businesses, contractors, and small businesses:
1) Home Businesses: If a courier slips on your doorstep while delivering documents and files a lawsuit, general liability insurance can cover the costs.
2) Contractors: Clients may require a certificate of insurance to safeguard against any damage caused to their equipment.
3) Small Businesses: When signing a commercial lease, your landlord may insist on general liability insurance.
Home, Business, Life & Auto Insurance Agency in Henderson, North LV, Reno, Spring Valley, Enterprise, Sunrise Manor, Paradise & Las Vegas, NV
To ensure your business’s protection, reach out to Signet Insurance Group. We specialize in helping you find the right general liability insurance and other customized coverages tailored to your business needs. Contact Signet Insurance Group today, and let us assist you!
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