Accidents are bound to happen. Sometimes, the fault may be on your side, requiring you to cater for the damages. The general liability insurance policy covers damages caused by yourself or your business. However, the coverage only applies when the accident occurred, not from your mistakes, negligence, or misinterpretations. The policy is standard with many companies, although acquiring it is not a legal requirement for most nations. A general liability insurance policy enhances your small business’s welfare, life, and performance. Typically, these businesses need a general liability insurance policy:
- Cleaning companies.
- Fitness professional.
- Retail and e-commerce businesses.
- Food service companies and restaurants.
- Construction professionals.
- Accountants and financial planners.
- Advertisement agencies and any other business find it reasonable to have the policy.
Let’s learn about how general liability insurance can protect your small business.
Small Business Insurance
Your small business has cost you hard work, savings, and dedication to establish. It would be best if you protected it with much energy as you had when you dreamt about it. But what if you fall victim to unforeseen circumstances that could shake your hard-earned business? Small business insurance protects you from unexpected events and ensures your business’s long and fruitful life. The costs of the policy are pretty affordable, especially for small businesses since it has few employees. Seek the services of a trustworthy insurance broker. The professional can assist you in making firm decisions and calculating the premiums well.
Bodily Injuries
General liability insurance will cater for the case’s medical, legal, and other reasonable costs when an accident occurs at your fault or your business. For instance, if your employee slips and falls while on duty, the above policy will adequately cover the case. Without the insurance, you would otherwise drain your pockets and the business finances. Nearly all businesses require a general liability insurance policy for this matter.
Property Damage
General liability insurance will protect your small business from financial constraints caused by a third party’s property damage. For instance, perhaps your client’s personal property gets damaged within your premises due to your negligence or mistakes. Either way, general liability insurance will cover the repair or replacement costs, alongside any other expenses related to the damaged product. General liability insurance also covers costs incurred to repair or rebuild the premises rented for your small business operations under the property damage category. Without the policy, you will be required to cater for the losses from your profits or savings, which is unsuitable for your still-establishing business.
Advertising Injury
A client can sue you and your business for any personal or financial loss from your company’s misleading advertisement. Your small business can also be sued for inappropriate use or using one’s image without consent. A general liability insurance policy caters to medical expenses (including surgery if required), transport to the hospital, and legal fees if required by the court. Sometimes, if the damaged property is not so costly, business owners prefer to pay them off privately rather than filing a claim. Doing so saves time, reputation, and public image.
Legal Claims
Small businesses require a general liability insurance policy to keep up their financial foundation in case a client or employee sues them for damages. The costs covered in such instances include payments to an attorney to defend your small business. There are also settlement or judgment costs, like medical expenses in case of injuries. Other expenses include witness fees, police report costs during investigations, and the court-mandated bond. Sometimes, the insurance company can request the policyholder to incur a few expenses from their pockets, based on the parties’ agreement.
Reputational Harm
If one of your employees talks ill about a client, either physically or through social media platforms, the client is free to sue your company for emotional damages. Your insurance company will undertake the losses under a general liability insurance policy. It pays for medical expenses if the client requires counseling, bonds (when required), fines, and court proceedings. Determining the price for reputational damage can be difficult. Small businesses are urged to hire respectful employees. They should also train their workforce to handle clients of all backgrounds, races, gender, and age.
Copyright Infringement
Copyright infringement happens when a business utilizes another business’s trademarked property or anything similar to promote its own. These properties include:
- Social media posts.
- Taglines, slogans, and motto.
- Web design, color schemes, and logos- branding.
- Product and company names.
Every business protects its trademark, logo, or motto through strict legal terms with an insurance company. Small businesses can significantly infringe these copyright rights since they lack knowledge about the industry and legal terms. General liability insurance protects small businesses against copyright infringement lawsuits if they unknowingly copy another company’s trademark. Your insurance company will cater to legal fees, confiscated materials, rebranding expenses, and other related costs.