There are nearly 30 million small businesses in the United States today, and 44% of them have no insurance. Now, make a random guess: how much does a average company dispute? The US Chamber of Institute for Legal Reform reports more than $ 100 billion each year.
If your company was one of these companies, you would like Aladin's lamp to save you from these expenses. I don't know about magic, but a general coverage policy can help you with certainty.
What is a general liability insurance?
General liability insurance is an insurance policy that protects companies against claims that may arise during normal business operations. It is a type of commercial insurance that protects third party bodily injury, property damage or personal injury.
General Liability Insurance Coverage
- Third-party bodily injury and material damage ̵
- Reputation Injury – Caused for Someone Because of Harmful Prosecution, Illegal Ejection, Violation of Privacy, Defamation, Defamation and More.
- Ad damage – Copyright infringement when displaying business ads.
- Medical Expenses – Occurs if a customer hurts himself when he visits your company.
- Damage – caused by fire, lightning strike or explosion on a rented property.
Who needs general liability insurance?
Most companies can benefit from general liability insurance. However, this policy is primarily for companies that:
- Operate in a place that is open and easily accessible to the public
- Interact with their customers in the workplace
- Use or manage client property
- Run a business in a rented space  Frequently advertise their products and services
- Has an Internet presence
- Use social media to reach their market or show ads
What are the most expensive claims made by small businesses?
As mentioned earlier, almost every company needs some form of general liability insurance. However, the cost of various claims may vary. The most costly property and general claims for small businesses are:
- Reputational damage – $ 50,000
- Vehicle accident – $ 45,000
- Fire damage – $ 35,000
- Product liability – $ 35,000
- Customer injury or damage – $ 30,000
Along with this, 35% of all claims for general liability lead to a lawsuit. The average claim for a lawsuit can exceed $ 75,000 to defend and resolve.
Prosecutions and property damage can occur at any time, and companies cannot expect them. In addition, companies may not be able to own all the property they use; therefore they rent. They also have to deal with the customer's problems from time to time, where customers can be injured.
Basic mathematics is sufficient to understand that the probability of some of these events occurring is high. Paying out of your pockets can be costly in any of these situations. So for 100% security for your business you should be willing to jeopardize 10-15% of insurance costs.
Exemption from general liability
General liability insurance does not cover:  Professional failure
The insurance excludes errors and omissions such as professional mistakes and failed services, deadlines. Professional non-life insurance (popularly known as non-life and non-life insurance) covers these types of claims.
- Employment Discrimination Matters
General liability insurance does not cover costs related to allegations of discrimination, harassment and wrongful termination. For such claims, you need liability insurance.
3. Employee Injuries
This insurance policy does not include medical costs for injuries and lost wages for employees due to accidents within the industry by their staff. For this type of injury, you need a separate workers' compensation policy.
4. Vehicles used / owned / leased by a company
General liability insurance does not cover damage to property or property caused by the use of vehicles used by the company or rented and rented car. Commercial car insurance can cover this type of damage costs.
- Business Property Damages
The policy also does not include the cost of repairing or replacing business properties damaged by fire or weather events or replacing stolen commercial properties. Commercial property insurance can cover this type of damage costs.
- Damage to construction work
The insurance cover excludes work-related accidents in the repair or maintenance of plumbing, electricity, heat and air, floor installation etc. You need a general contractor insurance to cover such claims.
You can still add any of these as recommendations for general liability insurance if your company is very susceptible to certain risks.
General liability cost
You may want to compare insurance and premium rates with similar companies. However, the premiums will vary depending on your insurance needs. This difference in cost is due to several factors, for example:
- Type of business
- Industry and risk factors
- Company location and size
- Construction condition
- Type of property used in the business  Coverage limits  Number of employees
- Frequency of contact with customers
- Years of experience
- History of insurance claims
I hope this comprehensive guide to insurance coverage has made you aware of what you need to ask your insurance agent about your commercial insurance . Insurance agents are looking for commercial customers because their insurance needs are usually more extensive than customers in the personal lines. Your insurance agent must be able to explain your coverage details and their limits. An independent commercial lines insurance agent has more knowledge to help you get the best coverage possible to secure them as well as their business.