As the owner or operator of a small business, or really any business for that matter, insurance considerations are an important element that should be given plenty of time and thought. There are a few such forms of insurance you may need to consider, and one that’s very common among small businesses and numerous others is general liability insurance. What is this, and what does general liability insurance cover for small businesses?
At Nielsen Benefits Group, we’re here to provide clients around Sandy and other parts of Utah with all their employee insurance, group insurance and other related needs, with services for small and medium-sized businesses, large businesses and more. This two-part blog series will dig into everything you need to know about general liability insurance for your small business – what it is, why it’s important to have, and what general liability insurance covers for small businesses.
What is General Liability Insurance?
For those unfamiliar with the term, general liability insurance (also known as business liability insurance) is a form of coverage that protects businesses from financial losses due to accidents or injuries that occur on their premises. This type of insurance also covers any damages or legal fees if someone files a lawsuit against your business for damages or injuries caused by your products, services, or operations.
For instance, if someone slips and falls in your store, general liability insurance would cover any medical expenses or legal fees that may arise from the incident. It can also protect you from claims of copyright infringement, libel, slander, and advertising injuries.
Why is General Liability Insurance Important for Small Businesses?
As a small business owner, it’s crucial to have general liability insurance as it provides protection against unforeseen events that could potentially bankrupt your business. If you don’t have this coverage, you will be personally liable for any claims and legal fees, which could result in significant financial losses.
Having general liability insurance shows customers and clients that you are a responsible and trustworthy business. It also gives them peace of mind knowing that they will be protected if something were to go wrong. Additionally, some clients may require proof of general liability insurance before working with your business.
Furthermore, general liability insurance can also protect your business against financial losses caused by property damage or injuries caused by your products or services. This coverage will give you the confidence to continue running your business without worrying about unexpected expenses that could potentially cripple your operations.
In part two of our series, we’ll go over some of the specifics on what’s typically covered by general liability insurance for small businesses. For more information or to discuss your general liability insurance needs, contact the experts at Nielsen Benefits Group today. Our team will work with you to ensure that your small business has all the necessary coverage to thrive and succeed.
