5 Key Points To Remember When Dealing With General Liability Insurance.

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General liability insurance shields and protects the owners of a business from several harmful possibilities in regards to lawsuits. While some businesses may be adequately covered by other types of insurance, there still may be a need for supplementary coverage in order to be adequately protected.

General liability insurance can help to minimize the fiduciary risk business owners are subjected to when their products are misused, or when something goes awry on a business property. Here are some key areas to consider when deciding whether or not general liability insurance is right for you.

1. Covers accidents on the premises:

It is very easy for someone to have an accident while on a business property. Sometimes the accident occurs due to negligence on the part of the business owner, while other times the accident will occur due to dumb luck.

Regardless of the reason, the business owner still has to deal with the possible litigation battle of the involved person. General liability insurance may help protect the business, as well as, the business owner if someone happens to slip, fall or trip while on the business property.

2. Covers accidents from employee carelessness:

As much as we would like to believe that it is possible to weed out the negligent employees from the contentious ones, it is still possible to get a few bad apples in the bunch. That being said, it is also possible to have a very responsible, and dependable employee commit a careless act due to temporary inattentiveness, lack of training, or lack of sleep.

Your business should not have to suffer due to the inappropriate actions of your employees. General liability insurance can help cover you when accidents occur that can be proven to be the result of employee carelessness.

3. Covers accidents from usage of a product:

Using a product usually results in happiness, and overwhelming job. Using a product can also result in severe burns, a broken arm, or a fractured toe. Sometimes the accidents result from misuse by the end user while at other times a defect in the product can cause it to malfunction.

These simple glitches can cause serious injury to the general public. General liability insurance can cover incidents that occur from using a product sold by the business, as well as covering any contractual liability. Having this type of insurance is definitely not something you want to ignore.

4. Protects business, and business owner from financial ruin:

So many businesses have started out with a great business plan, amazing marketing, and an incredible operational structure. Unfortunately, just as the business is getting off the ground, a lawsuit resulting from an injury while on the premises of the business, or from the use of a product produced by the business can mean thousands spent in legal fees, and years of being locked up in court.

With much needed funds diverted away from production, and research and development, the growth of the company comes a screeching halt, and the dreams of a few entrepreneurs are shattered before they know it. Having general liability coverage could have saved the business owners from much heart ache and insured the survival of the company. The insurance can pay for the cost of the injury as well as protect the business owner from fiscal ruin.

5. Covers people beyond the business owner:

While protecting the business owner from financial ruin should be the main reason you have general liability insurance, keep in mind that it also protects others that are on the premises or otherwise have contact with the business.

General liability insurance can protect patrons, product suppliers, workers who deliver the products, vendors and visitors to the business establishment. General liability insurance basically covers any events in which the business owner is sued for something that happened as an end result of a person dealing directly or indirectly with the business.


For a business owner, general liability insurance is a valuable and essential thing to have in place in order to help protect the assets of the company and business owner. How much coverage a business needs will vary depending on the situation, but a company should have no less than the least possible amount of insurance to cover business needs.

Most financial business strategists would suggest that owners carry at least one million dollars in general liability insurance coverage for each business that they own. In fact, many experts would suggest that two to three million dollars in general liability insurances is even better. While some business owners may think they cannot afford such a great amount of insurance, having more than one million in coverage is not that much more expensive.

Additional coverage beyond one million dollars does not affect the price directly (i.e. double the coverage does not necessarily mean double the price). Usually you can add on another million or two of coverage without greatly increasing the price. But the extra coverage does help to give everyone more piece of mind.

In short, general liability insurance helps business owners and companies be protected from lawsuits resulting from accidents on a business property, or from using a business product.

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