As a business owner, it’s imperative to safeguard your operations proactively. Securing general liability insurance is one effective means of safeguarding your business’s financial well-being. This form of insurance helps protect a business from an array of potentially unforeseeable situations. While you might never need to use it, having general liability insurance in place can be a valuable asset should the need arise. 

What Is General Liability Insurance for Business? 

General liability insurance is insurance that helps cover a business against third-party claims of bodily injury or property damage. If a business does not have general liability insurance, it may have to pay for potentially costly claims out of pocket. 

What Does Commercial General Liability Insurance Cover? 

General liability insurance typically covers claims that can occur through business operations. These policies generally include coverage for the following types of claims:

 

• Third-party bodily injury—General liability insurance coverage may help pay for resulting medical costs and legal fees if your business is responsible for third-party bodily injuries.

• Third-party property damage—General liability insurance coverage may help pay replacement fees or repairs if your business damages someone else’s property.

• Reputational harm—General liability insurance may help provide coverage if your business is sued for libel or slander.

• Advertising injury—A general liability insurance policy may help pay for fees related to your business being sued for copyright infringement.

Is General Liability Insurance Required by Law? 

In many jurisdictions, general liability insurance is not explicitly required by law for all businesses. However, there are exceptions and instances where certain businesses or activities might be mandated to carry general liability insurance by local, state or federal regulations. While general liability insurance might not be a legal requirement across the board, it’s still highly recommended for most businesses due to the potential risks they face. 

Who Needs General Liability Insurance? 

Most businesses can benefit from general liability insurance; however, that is especially true if any of the following statements are true: 

• The business is open to the public.

• Employees visit, work on or work near clients’ property.

• The business has marketing or advertising collateral.

• The business uses social media for professional reasons.

• The business collaborates with other companies or clients that require proof of insurance.

Contact Grimes Insurance Group to discuss your business insurance needs. We can make coverage recommendations based on your specific operations.