General liability insurance is one of the most important policies that your business can carry. This insurance covers a variety of dangers faced by your business on a day to day basis from lawsuits concerning negligence to injuries on your business property.
General policies will usually cover a few different types of third-party injuries.
Bodily Injury Coverage: Covers injuries someone sustains in your business or on your property. For example, if a client slips and falls in your showroom, this policy can help cover their recovery needs.
Property Damage Coverage: If you damage someone else’s belongings, this coverage can pay for repairs or replacement. If your dry cleaning service ruins an antique table cloth, you can use coverage to repay the customer.
Personal and Advertising Injury: The damage you might cause someone might not be physical. Libel, slander or false arrest all could cause considerable harm to someone else. This coverage can help you cover related losses.
All general liability coverage is different. Check with your agent to see how your specific policy governs each type of coverage.
Often, you’ll need to expand your general liability coverage with specialty policies.
No insurance policy covers every conceivable accident. Liability insurance is no different.
Your general policy will likely come with exclusions, and financial limits.
For example, let’s say you have $500,000 in general liability coverage, but someone sues you for $1 million in damage. That means you might have a $500,000 gap in how much you wind up owing.
Umbrella liability insurance can fill in the rest of the coverage so that you don’t have to pay the remaining $500,000 out of pocket.
Errors & Omissions Protection
With professional services, there’s a chance you could make a mistake that causes someone else a loss. An accountant who makes mistakes on tax forms might make that person face unfair charges. Following this mistake, the customer may sue for the lost costs. Errors & omissions coverage (or E&O protection or professional liability insurance) might help business owners pay for the damage they accidentally cause in the course of their advice.
Directors & Officers Coverage
Businesses with boards or executives often need to cover risks related to decision-making. D&O coverage is the protection you need in this case. It will help pay for legal settlements or other costs stemming from the decisions made by the board. Generally, these policies can prove extremely beneficial when retaining talent. It helps prove that the business values its mangers’ capacity.
Connect with your insurance agent about combining general liability insurance with other coverages so that you can cover all of the liability risks faced by your business.