General liability insurance is frequently combined with property insurance on a Business Owners Policy (BBOP), but it is also available separately as a stand-alone policy through the Progressive Insurance Company. As a contractor or even small business owner, you should definitely have some form of general liability insurance to protect your livelihood from unexpected damages that may befall your business. You may want to research several policies before you make a decision because there are so many companies offering these types of insurance policies. Your primary concern when purchasing this type of insurance should be to purchase the right policy at the right price.
When shopping around for general liability insurance, it is important to understand how the policy will work. You will probably be required to obtain specific coverage and limits for many of the items covered under your policy. For example, if you hire employees you will be responsible for workers’ compensation expenses, regardless of whether the workers actually suffer an injury on the job. The same is true if you or one of your tenants slips and falls on your property, whether the accident was caused by your negligence or not.
Other items that may be covered by your general liability insurance may include, but are not limited to, errors and omissions, advertising claims, property damage, and product liability. Errors and omissions coverage typically cover your clerical or marketing mistakes. Property damage is designed to compensate for damage that is caused to the actual property, fixtures, or supplies. Product liability is designed to cover any potential threat to customers, either physical or digital, from the products you sell. However, small business owners should keep in mind that this coverage does not usually cover errors and omissions.
General liability insurance coverage usually does not cover business assets or personal property of the insured party. Typically, the insurance company will attempt to determine the worth of the business assets and any personal property held by the insured party before providing any insurance. Because of this exclusion, it is very important that small business owners obtain any possible endorsements or limits for their personal property to avoid being forced to disclose their business assets as a part of their business liability insurance requirements.
Business liability insurance protects against lawsuits based on negligence or breach of contract. The main goal is to limit your exposure to possible lawsuits while maintaining adequate levels of customer service. Business liability insurance also protects against losses that result from advertising and other claims that occur because of your business operations. Some common examples are slander, libel, advertising claims, and breach of warranty.
General liability insurance also protects against claims for errors and omissions in business operations. For example, if a business owner forgets to perform an item properly, he or she could be held liable for causing damage or injury. Other risks include intellectual property theft, product liability, and contract claims. General liability can be a complicated area because each risk has its own unique aspect. This is why many businesses consult with a professional to determine the scope of liability insurance and the specific risks associated with their operations.
Product liability insurance helps protect your company against claims made because of defective products or workmanship. In addition to preventing such claims, workers compensation insurance protects your company against injuries that occur on the job. Examples of these types of risk include slip and fall injuries, eye injuries, and other problems. Your liability insurance policy may also cover potential hazards that occur due to exposure to asbestos, lead, chlorine, or other chemicals.
Many states require workers compensation insurance coverage. Therefore, you should always have at least the minimum required by your state. To be sure you are completely covered, it is a good idea to consult with an experienced workers’ compensation attorney. He or she will be able to provide you with the advice you need to decide whether your business needs to have this coverage. You may discover, however, that it is a good idea to go beyond the minimum required by your state.