How to Protect Your Business From Being Sued
When you run a business, there is always the potential for something to go wrong. Whether it is an employee injuring themselves on the job, or a customer slipping and falling in your store, if you are found to be at fault, you could be facing a lawsuit. This is where general liability insurance comes in. General liability insurance can help to cover the costs of any legal fees associated with a lawsuit, as well as any damages that may be awarded.
What is General Liability Insurance?
General liability insurance is a policy that allows you to protect yourself from paying out of pocket for any expenses associated with lawsuits. It will cover damage to property, bodily injury or death, and the cost of defending yourself against a claim.
For example: If a customer slips and falls in your store because you have an unsafe floor, or if a customer eats food that makes them ill and they decide to sue you, your general liability insurance will cover the cost of the lawsuit. However, there are some cases that fall outside of this type of insurance. For example, if you somehow cause harm to another person intentionally, then you will not be covered under your general liability policy. Therefore it’s important to know exactly what kind of business you have and exactly how much coverage you need before purchasing a policy.
What does General Liability Insurance Cover?
General liability insurance covers the cost of defending yourself against a lawsuit and paying any damages if you are found to be at fault. It also covers legal fees that may have incurred, as well as property damage.
What Does General Liability Insurance Not Cover?
General liability insurance does not cover intentional acts and does not cover the costs of any punitive damages.
Who Needs General Liability Insurance?
If you have employees or contractors, you will need to have general liability insurance. In addition to this, if you own a home-based business, it is highly recommended that you consider adding this coverage to your policy. How Much Does General Liability Insurance Cost? The cost of general liability insurance varies from one company to another and from policy to policy. You can expect to pay anywhere from $500 – $10,000 a year for this type of coverage.
Why Do You Need General Liability Insurance?
This type of insurance is necessary if you want to protect yourself from lawsuits that can be filed against you. If a client, customer, or other visitor injures themselves on your property and they are unable to file a lawsuit against you personally, they may file one against your business instead.
When Is General Liability Insurance required?
If you have employees, if you provide services to the public or if you own a business, you will need general liability insurance. This type of coverage is necessary even if you don’t think that your business could possibly be sued. Even if you don t make a mistake or run into a problem that leads to someone getting injured, you may still be sued for an accident that happened on your property.
Is General Liability Insurance required by Law?
The answer is yes and no. No, you are not required by law to have general liability insurance. But that doesn’t mean that you shouldn’t get it. If you are in a profession where having coverage is required by your state, then it would be wise to purchase it. If you are not in a profession that requires coverage, but you think that your business could be sued, then it would also be wise to purchase insurance.
Conclusion
General liability insurance is a must for every business. What kind of coverage you get will depend on the type of business that you have. You should weigh your options to find the best deal possible.
Fampro insurance will provide you with the best deal possible, we have more than 10+ years of experience and have protected hundreds of businesses from the unexpected in the State of Texas. Schedule your FREE consultation today and learn more about how Fampro Insurance will protect your business in less than 30 minutes.