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2 Ways Businesses Use General Liability Insurance


General liability insurance is a must-have for all businesses. In fact, most places legally require all companies, big and small, to carry such policies - but that doesn’t mean those businesses are taking full advantage of their coverage. Particularly when it comes to small businesses that don’t have access to substantial legal counsel, issues that could be covered by general liability insurance may sometimes be paid out of pocket. By learning more about how to use your general liability insurance policy, though, your business can save money while still fulfilling all of your responsibilities.


In The Event Of Injury

One of the most important things that general liability insurance covers is injury to customers related to your operation. Such accidents are a worst case scenario for any business owner, but the reality of the situation is that customer injuries happen all the time and typically they’re relatively minor and the result of an accident; while negligence may occasionally come into play, as in all other parts of life, things happen and people get hurt. In such incidents, general liability insurance can help your business cover the injured party’s medical costs, including hospital bills, medication, and nursing care.


It’s important to note that, though general liability insurance covers customer injuries, if a staff member is hurt on the job, this policy won’t be enough. Staff are covered under workers’ compensation insurance, a separate kind of policy regulated by state workers’ compensation laws. Knowing these differences is critical to protecting your business and everyone who walks through your doors.


Unfortunate Advertisements

When thinking about common business risks and how to protect your company, entrepreneurs often focus on physical hazards or material harms, like financial losses or incorrectly completed jobs. As a business owner, though, public materials, like advertisements, are held to a higher standard of accuracy than a casual blog post. If you violate another company’s copyright or you’re accused of libel or slander, general liability insurance can cover your legal fees.


Of course, when it comes to filing a claim with your insurance company, it’s important to consider the cost of your legal responsibilities as a business versus the cost of your insurance the potential for increased policy costs. For small businesses, though, general liability insurance is quite affordable. The price varies based on how high risk your business type is, the frequency of incidents, location, and other factors, but when it comes to the cost of insurance versus the cost of legal fees, having liability insurance is far better for your business’s budget.


A Multi-Purpose Policy

General liability insurance is so valuable to small businesses because it’s a multi-purpose policy, suited to a variety of legal situations, such as theft and property damage, some types of business losses, injuries, and much more. Though it won’t cover things like automotive accidents involving company vehicles or worker injuries, it’s your first line of defense against the sorts of minor incidents every small business encounters. While you want to act preventatively to protect your business’s reputation, when accidents happen, it’s good to know that you’ve got an insurance plan you can trust on your side.


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