There are various risks associated with operating a business. Insurance provides a layer of protection to business owners. One of the most important parts of a business insurance policy is liability coverage. As a business owner, you’re likely aware that you could be sued at any moment. Perhaps your employee is accused of performing negligent service. Perhaps a customer is visiting your store when they slip on a wet spot and hurt their ankle. Getting general liability insurance in Vancouver, WA, can protect your business in these situations. Here’s a closer look at the impact of general liability insurance.
- General Liability Insurance ExplainedGeneral liability insurance covers your business against potential property damage or bodily injury claims. The policy protects your business from covering any legal fees and other costs out of your business income. General liability insurance also safeguards your business from a potential financial catastrophe.
- General Liability Insurance OverviewGeneral liability insurance protects your business against claims arising from multiple situations. Bodily injury claims are relatively common. The policy protects your business if one of your customers is injured on your property. Bodily injury coverage takes care of their medical expenses. Property damage claims are also relatively common. Property damage claims may occur if your products are alleged to be responsible for harming someone’s property.
Such claims also include any negligent actions by one of your employees. General liability coverage will cover the necessary repairs. General liability coverage protects you against claims that your business used someone else’s work without their permission.
The policy protects your business against allegations of libel, slander, and defamation of character. It’s also recommended that you consider adding umbrella insurance to your policy. Umbrella insurance gives you an extra layer of protection if you are dealing with a claim that extends past your liability limits.
- General Liability Insurance CostsResearch shows that most businesses add at least $1 million worth of general liability coverage. The duration of the policy is normally a year. While general liability insurance isn’t legally mandated to operate your business, it’s essential because you are potentially exposing yourself to serious risks. The type of policy you need depends on the size of your business, the location, the amount of coverage you need, and the industry in which you are operating.
If you are on a budget, consider purchasing a Business Owners Policy. A Business Owners Policy combines liability insurance and property insurance into one policy. If your business is involved in a high-risk industry, you will likely have to pay more for coverage. Your deductible is significant as well. Your policy deductible outlines the amount you have to pay out of pocket for a covered loss before your insurance steps in to cover the rest.
- Potential ExclusionsGeneral liability insurance policies do have a few potential exclusions. The policy doesn’t cover any employee injuries on the job. Workers’ compensation is designed to cover any issues in the workplace. If you have a fleet of vehicles you use to complete tasks, commercial auto insurance covers any damages to those vehicles. If you are using a personal vehicle on the job, you can add hired auto insurance to cover the vehicle.General liability insurance in Vancouver, WA, does not cover potential negligence. An Errors and Omissions insurance covers you if your business is accused of providing negligent service. The policy also does not cover your business equipment or inventory if it is stolen or damaged. Commercial property insurance covers these issues.
Consult With Action Insurance Group
General liability insurance is designed to protect your business from suffering a financial catastrophe. Accidents may occur at any time. However, it’s important to have protection in place during those times. If you have any questions about your policy, contact the team here at Action Insurance Group, and we will assist you.
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