In a 2019 study, 40% of small business owners did not have insurance. Seventy-five percent of those who did have insurance were underinsured.
Insurance is an important part of running and owning a business. Without the right insurance, you could be stuck paying for legal costs, medical bills and repairs as well as property damage.
Businesses that have insurance begin with a policy of general liability. Is general liability insurance enough to cover your needs?
Learn what business insurance you should consider, including general liability.
What is general liability insurance?
General liability insurance covers your business against claims.
You could be charged if you have defamed another business, a customer, or a competitor. In an interview, you could say something that damages the reputation of another person or company.
Downloading a photo from Google to use on social media is possible. If the image is protected by copyright, you could be sued.
If a client slips on your property and is injured, they may sue to recover medical expenses, lost wages and damages.
The claim could cost you thousands of dollars. You don’t pay anything out of pocket because your insurance covers the claim.
Is your company covered by general liability if an employee is injured at work? It does not.
Other types of business insurance policies
It covers many things, but not everything. If your business is flooded in a natural catastrophe, for example, you will not be covered.
Only commercial property insurance will cover your business if it is robbed or vandalized. Many businesses opt for an umbrella policy that combines general liability and property insurance.
Only auto insurance policies cover accidents. Coaches and consultants, for example, should have a policy that covers errors and omissions.
Do you have sensitive data about your customers, like payment information? Cyberattacks are a threat to every business.
Cyber liability insurance covers your business in the event of an attack. The policy covers interruptions of business due to hacks or data breaches. Some policies also cover public relations.
To determine which insurance policies are best for your business, you should consult an insurance firm that specializes in commercial coverage.
Get the right business insurance coverage
General liability insurance is essential to protect your business. You need more than just this policy to protect your business.
Consider other types of insurance for your business, such as workers compensation, cyber liability and property insurance.
Check out our blog for additional business tips.
