General Liability Insurance - Basic Business Coverage PDF Print E-mail
Written by Caressa Waechter   
Sunday, 25 April 2010 16:18
Most businesses need to purchase business general liability insurance. It is the one insurance most need, even if they do not purchase any other coverage. Some landlords will require a business to have this insurance if they are leasing space from them.
by CaressaWaechter


Most businesses need to purchase business general liability insurance. It is the one insurance most need, even if they do not purchase any other coverage. Some landlords will require a business to have this insurance if they are leasing space from them.

Some people opt for a business policy that bundles general liability and property insurance together. Often, however, the general liability coverage limits are not very high in these types of policies. The amount your particular business will need depends on a number of considerations.

Two considerations are the business type you are engaged in as well as its worth. Obviously, if it is worth more, you risk losing more as well. If your business is well known, it may be seen by some as a target. Also, where you are geographically located can make a lawsuit more or less likely.

General liability covers you in the case of a claim of property damage, physical injury, personal injury or injury from false advertising or copyright infringement. The insurance company will also cover legal costs. Policies usually list a maximum amount paid per lawsuit as well as a maximum paid during the period of coverage.

Some companies will choose to buy umbrella liability insurance as well. This takes over when the general liability coverage is exceeded. It can also pay for liabilities that are not covered under the standard policy.

You can take some actions to help reduce your insurance cost. Quality control and employee training may work to get your rates lower. Even if they do not, it is smart to implement procedures that will help claim prevention.

To accurately determine what you need in terms of a policy and coverage, you will need to sit down with an insurance agent or broker. Discuss with an expert the details of your business so that they can help you make an accurate assessment as to your needs.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Two specialized liability insurance coverages include contractors general liability insurance for builders and coverage from professional liability insurance companies for companies that offer professional services.