Businesses buy General Liability Insurance to protect themselves from lawsuits, settlements and judgements. General liability insurance is just one type of commercial insurance policy you need to consider. Having the tight liability insurance policies in place can save your company from property damage lawsuits or personal injury claims and costly legal defense fees, whether you are found guilty or not guilty of negligence.
You can buy general liability from an insurance online, and from an agent or broker. Just remember that when shopping for insurance, this is not the only type of coverage you may need for you business. Be sure to ask about Professional Liability Insurance such as Errors and Omissions coverage and malpractice. Also ask about worker's comp insurance.
The three most important aspects of general liability insurance are as follows:
1. Limits
The limit of a general liability policy refers to the maximum amount the insurance company will pay out. It's important to get the right amount of coverage for your business based on it's specific risks. If you buy a policy with a $1 Million limit and you lose a suit for $1.2 Million, you'd be responsible for paying the other $200,000. That would bankrupt many small businesses. Businesses with risk beyond their policy limits should consider an umbrella policy which is usually a cost effective way to cover additional risk. The best way to determine how much risk your business has is to sit down with an insurance broker.
2. Exclusions
Liability insurance exclusions are the things that are not covered, such as acts of war, and breach of contract. Find out if your policy has any exclusions before you purchase and ask if they can be covered if they are items of concern. In most cases, additional policies can be purchased to protect you from the items not included in your general liability insurance.
3. Deductibles
Deductibles are the part of any claim that you pay out of pocket before the insurance company. Most general liability insurance policies have no deductible, but you are a small business with minimal risk, you can cut the cost of your insurance by requesting a deductible. Just be sure it is an amount you can easily pay in the event of a claim.
General liability insurance costs have increased over the years as the number of lawsuits brought against companies has risen. In today's litigious society too many individuals have the idea that all businesses and insurers are wealthy and can pay out millions of dollars easily. That's why liability insurance is such an important facet of any business, both large and small.
You can buy general liability from an insurance online, and from an agent or broker. Just remember that when shopping for insurance, this is not the only type of coverage you may need for you business. Be sure to ask about Professional Liability Insurance such as Errors and Omissions coverage and malpractice. Also ask about worker's comp insurance.
The three most important aspects of general liability insurance are as follows:
1. Limits
The limit of a general liability policy refers to the maximum amount the insurance company will pay out. It's important to get the right amount of coverage for your business based on it's specific risks. If you buy a policy with a $1 Million limit and you lose a suit for $1.2 Million, you'd be responsible for paying the other $200,000. That would bankrupt many small businesses. Businesses with risk beyond their policy limits should consider an umbrella policy which is usually a cost effective way to cover additional risk. The best way to determine how much risk your business has is to sit down with an insurance broker.
2. Exclusions
Liability insurance exclusions are the things that are not covered, such as acts of war, and breach of contract. Find out if your policy has any exclusions before you purchase and ask if they can be covered if they are items of concern. In most cases, additional policies can be purchased to protect you from the items not included in your general liability insurance.
3. Deductibles
Deductibles are the part of any claim that you pay out of pocket before the insurance company. Most general liability insurance policies have no deductible, but you are a small business with minimal risk, you can cut the cost of your insurance by requesting a deductible. Just be sure it is an amount you can easily pay in the event of a claim.
General liability insurance costs have increased over the years as the number of lawsuits brought against companies has risen. In today's litigious society too many individuals have the idea that all businesses and insurers are wealthy and can pay out millions of dollars easily. That's why liability insurance is such an important facet of any business, both large and small.
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Before you shop for Business Liability Insurance make sure you are armed with all the insurance information you need. Click to this Liability Insurance Guide For Business and get up to speed.
