What Is General Liability Insurance?: The Facts Every Business Owner Should Know

Has anyone ever told you to consider getting general liability insurance or Association Health Insurance? Did it leave you wondering, “Well, what is general liability insurance, anyway?”

Here’s the answer to that question with the facts every business owner should know about general, aka, business insurance. Commercial liability insurance is something you should make yourself familiar with because 40% of small businesses are likely to experience a liability claim within the next decade — and a general liability policy will end up helping out a lot.

Want to know how? Read more to find out!

1. Coverage

First of all, you need to know what commercial general liability insurance covers.

General liability insurance covers any third-party mishaps. Those include if a customer of yours gets hurt or has their property damaged on the part of your company.

This type of insurance also covers any type of reputational harm that a third party can do to your company.

This includes things like libel, slander, and also claims that other companies could make against yours. Sometimes this happens when advertising between competing companies looks too similar.

This insurance provides you with the ability to follow through with these claims should they require any legal action. Opting for business health insurance is also deemed an essential in ensuring the health of your employees. That is the very reason why business owners are providing healthcare and getting employees their health insurance!

2. Users

So next, who uses general liability insurance?

Well, just about any small business (or big business) can! From a personal injury lawyer to a locally-owned donut shop, general liability insurance can help anyone who has customers and competition.

Yet, it may seem underrated because there is no actual rule by law that businesses operate with general liability insurance. So, at the end of the day, it is an extra tool that you and your business can choose to take advantage of.

Companies may or may not indulge in general liability insurance for many reasons. So, it’s important to think it through before committing.

3. Cost

One reason general liability insurance may seem like a hassle is because the cost can be hard to figure out.

But it’s not too difficult to work through when you get the hang of the factors that affect the cost. These include the size of your business, the expected number of occurrences that you’d use the insurance, and where your business is located.

A business with lots of employees and lots of space/products will end up needing more insurance which tends to cost more money.

But at the end of the day, it’s important to remember that you can’t go wrong by being prepared! You can even get tons of help determining what the best deal on general liability insurance is for you through different online calculators and insurance services websites.

What is General Liability Insurance? Now You Know!

Now, not only will you be able to determine if and how much general liability insurance you may need for your small business, but you’ll also have a thorough answer to give when someone asks, “What is general liability insurance?”

So in turn, you’ll be spreading the knowledge and hopefully the use of this helpful business tool, many people don’t realize that almost every business should be covered by a general liability insurance, even Marijuana dispensary businesses at least need dispensary insurance.

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