Owning a business comes with many responsibilities. Those responsibilities include figuring out which insurance policies you need, and which ones you don’t.
General liability insurance is one of those policies that rides the line between one you might need and one you might not need. Because it isn’t usually mandated by law (except in the case of some construction projects), it’s an easy thing to skip.
But, just because you may not have to have general liability insurance doesn’t mean you shouldn’t get it.
Here’s who needs general liability insurance, starting with exactly what it covers.
What General Liability Insurance Covers
General liability insurance provides you with coverage from liability claims that come from people outside of your business. If someone decides to sue you, a general liability policy can pick up the tab so you aren’t stuck paying for damages, medical expenses, court costs, or administrative costs to handle covered claims.
A general liability insurance policy covers:
- Bodily injury, like slips and falls, as well as accidents
- Property damage accidentally caused to a third party, like a neighboring building
- Personal injury due to libel or slander
Does this sound like protection that you might need, but you still aren’t sure?
Here’s exactly who needs general liability insurance.
Businesses That Rent or Own a Commercial Space
If you rent a commercial space, your landlord may require you to have general liability insurance. Although your business may be at fault for damages and injuries, because your landlord actually owns the property, they may be on the hook too. By ensuring you are protected when you rent the space, they are protecting their business as well.
If you own the space, but you have taken out a mortgage to pay for it, you may also be required to hold general liability insurance. The mortgage company may require you to have certain insurance policies to ensure that you are a worthy lender.
For example, if your business is suddenly embroiled in a bodily injury claim that you’re paying for out of pocket, you may not have enough money left over to pay the mortgage. With the right insurance policies in place, you can continue to pay your mortgage, which makes the bank happy, but it also means you can continue to keep your doors open.
Those Who Work Directly With Clients
If you work directly with clients on projects that could result in a possible injury, it’s a good idea to have a general liability policy. Contractors are a great example. Even if their client doesn’t require a policy before work begins, having one can make sure that you aren’t sued by your client after they experience an accident when visiting the jobsite.
Do clients meet with you at your office, or do you have customers who come into the shop? It’s a good idea to consider general liability insurance.
Other types of businesses may want to consider this type of insurance too. For example, designers can prevent the high costs that are associated with being sued by a competitor who claims you stole their designs.
Anyone Who Wants Protection in the Event of Litigation
Who needs general liability insurance? Any business that wants protection from litigation can benefit from a policy!
Still unsure if you really need a general liability insurance policy? Or maybe you’re wondering how you can customize a policy to fit your budget?
At DJM Insurance, we specialize in working with the construction and contracting industries to create custom policies that provide you with the right coverage at the lowest rates possible. Contact us today to learn more about how we can personalize a policy for your business!