General Liability Insurance, also known as Commercial Liability Insurance (CGL) and LLC General Liability Insurance, is a basic insurance policy that protects your small business assets from various dangers. Most LLCs and small businesses take out general liability insurance upon incorporation to ensure they are protected in the event of an accident or disaster.
General liability insurance defined
The Really Useful Information Company (TRUiC) defines liability insurance as a type of commercial liability insurance that protects a business against the financial consequences of personal injury, bodily injury or property damage.
It is suggested to take out general liability insurance when starting a business. General liability insurance covers damage caused by you or your staff and can protect your LLC if someone is injured on your business premises. If you are held liable, the police will pay for your legal defense and the costs associated with the loss, subject to the limitations in the policy.
What does general liability insurance cover?
An accident can happen very quickly, it is important to understand against which incidents to protect yourself:
- ● Any physical harm to a person’s body, including non-employees
- ● Damage to real or personal property, whether yours or a client’s
- ● Medical expenses incurred as a result of incidents occurring on your property
- ● Slander, copyright infringement, invasion of privacy and property, illegal evictions and bogus arrests are all examples of personal responsibility.
- ● Damage suffered as a result of your advertising or by infringing the copyright of another company
- ● Any legal decisions that need to be made, or hiring a legal representative
TRUiC identifies the following cases that are not covered by liability insurance:
- ● Guarantees provided by your company
- ● Compensation for employees injured at work
- ● Compensation of employees whose contracts are terminated
- ● Any commercial automobile insurance claim
- ● Damage caused by fire or storm in business premises
Why liability insurance is a necessity
General liability insurance is a must-have for any business that owns real estate or other significant assets. Premiums typically range from $ 300 to $ 1,000 per year, depending on your coverage needs and industry. Liability insurance helps protect your business from the financial ramifications of lawsuits, which can often cost tens of thousands of dollars. General liability insurance coverage is a small sum to pay for the security and peace of mind it provides, especially given the inexpensive premiums.
The advantages of general liability insurance
TRUiC explained that a professional liability insurance policy will protect your LLC’s assets in the event of a claim. There are, however, other real benefits to purchasing liability insurance for your LLC. A general liability insurance policy shows that your business is stable and well established. Having insurance shows that you care about the well-being of your employees. Employees can rest a little better knowing that their work is insured and protected. Potential customers often want an insurance policy because they don’t want to be held responsible for any mistakes that might arise. Having an insurance policy could be the difference between winning and losing an offer.
What is the cost of general liability insurance?
An LLC’s liability insurance policy typically costs between $ 300 and $ 1,000 per year; however, different factors come into play when estimating this price. These factors include the business model of the organization, the needs of the organization and the various risks that may arise. Obtaining a quoteis the only method to get an accurate figure for your specific needs.
The items mentioned above are just three factors that come into play when estimating your company bonus, but other variables should be taken into account:
- ● How likely are your businesses to be at risk?
- ● The location in which your business is located
- ● The number of employees you have and their annual payroll
- ● The amount paid per incident
- ● Amount of coverage payable per policy period
Under US law, have insurance for your SARL is not required, but before you can work for certain companies or clients, they may need you to have a certain amount of general liability insurance. When renting commercial space, some owners may require you to have liability insurance. With the help of TRUiC, you are sure to make better business decisions.