Small Business Blog
What is General Liability Insurance for Business?
January 31, 2019
Do I need to have general liability insurance?Virtually every type of business needs some kind of liability insurance coverage (in fact, it’s often the first insurance coverage purchased for a new business). It would be fairly reckless to operate without it. Many times, clients or property managers require you to carry general liability insurance so they feel reassured that everything will be ok in the case of an accident, property damage, or a lawsuit.
What does general liability insurance cover?Make sure you check your policy for details, but typically your General Liability insurance will cover:
- Property damage: Expenses to repair client property that was damaged as a result of your work.
- Injury: Medical and legal expenses related to injuries experienced by third party (excluding your employees; you want
to cover your employees for work-related injury or illness).
- Products: Legal expenses associated with your product (eg: somebody sues you because your product caused them harm).
- Defamation: Legal expenses associated with libel, slander or copyright infringement.
General liability insurance doesn’t cover everything, though. It doesn’t typically include:
- Employee injuries: Get Workers’ Comp insurance to cover your employees in the case of a work-related injury or illness.
- Business property damage: Get Property insurance to cover your business property in the event of damage such as fire, theft, and water damage. You can typically bundle property insurance with your general liability policy (business owner policy).
- Employee lawsuits: Most general liability policies won’t cover legal expenses related to claims of discrimination or harassment.
What is a BOP?Insurance lingo! BOP stands for Business Owner Policy - essentially, it is General Liability and Property insurance bundled together. It’s the basic coverages that a business typically needs to operate (excluding Workers’ Comp). You can shop for and compare prices for a BOP here at Talage and a BOP is usually less expensive than the total cost of buying Liability and Property insurance separately.
What does General Liability insurance cost?No getting around it, the cost will depend on what your business does and its history. Some businesses can get coverage for less than $25/month. But, basically, it’s a risk equation for insurance carriers. Here are some of the factors:
- Years in business
- History of claims
How do I get the best rates for General Liability insurance?There are a lot of factors that go into deciding how much an insurance company will offer its policies for. To get the best rates, it really requires shopping and comparison.
Here's the shameless plug because we want to make life easier on you - Talage just asks you for your business information once and then we do the heavy lifting of shopping our A-rated insurance company partners so that we can provide you with multiple quotes online right away. Then you get to see what these companies are offering their coverage for and choose the best policy for you. Often times, this means you also choose the one that offers great coverage at less cost. You get to see the prices and decide for yourself! Note - property insurance is bundled with General Liability insurance (called a "BOP" - business owners policy). If you’re ready, you can shop for quotes right now. Our average applicant only takes 10 minutes from application to policy selection. You don't need to spend weeks shopping for insurance. Check it off your list so you can get back to running your business.
What happens if my business insurance expires?
There are times that small business owners accidentally allow their insurance to expire. Read more about the risks of not having insurance coverage for your business.
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Coverager: AF Group Partnership
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