Small businesses fork up to $36 billion per year for out of pocket for case settlements. This is a staggering statistic. And as a small business owner, you don't want to be part of it. So what can you do to keep your business out of the red? The answer is to get the right kind of insurance.
Unsure what work insurances you need to protect your small business? You're in the right place. Read on to learn more about general liability insurance.
What is Business Liability Insurance?
Business liability insurance is essential to the protection of your small business. There are two major types of work insurances: worker's compensation and general liability.
Worker's compensation is required in most states. It covers for work-related illnesses or injuries by paying for recovery expenses and replacement wages for the employee.
But, general liability insurance is a much wider safety net. It's a blanket coverage, which means there are a variety of scenarios you're covered for. To know exactly what areas you need coverage in, read more here.
What Does General Liability Insurance Cover?
The obvious reason for purchasing a general liability insurance is to protect your business from the expenses of litigations, settlements and court judgments. Here's a helpful list outlining what general liability insurance covers.
Non-employee bodily injury sustained on business property
Restitution from death as a result of bodily injury
Physical property damages
Liabilities from entering a contract
Advertising injury (such as libel or slander)
Expenses for attorneys and investigations during a lawsuit
Check with your insurance agency to determine the policy that's right for you.
How Do I Apply for This Kind of Insurance?
Before jumping into the first policy that comes your way, there are a few things you must set in order. First, you should find a reputable insurance agency that deals with work insurances. It's important to find a solid agency, so you can rest easy knowing you'll have the best coverage for your business.
After that, you'll need to gather paperwork for the insurance company to ensure they'll create a policy that fits the best for your business. Here are a few things you'll need:
Information pertaining to your business (tax ID and other legal paperwork)
History of past insurance claims
Details of your workplace (any risk exposures you may have)
Amount of employees you have
Any other insurances under your business
Once you've organized and compiled your paperwork, you're ready to get started with the application!
Recapping Work Insurances: General Liability
General liability insurance, known also as commercial liability insurance, is one of those work insurances every employer needs. It covers for a slew of liabilities including property damages, attorney expenses, and much, much more.
We hope this article helped you understand the world of commercial liability insurance. For more information on other types of business insurances available, call us today!