For any organization, business liability insurance is an essential component. If you haven’t purchased liability insurance, you may still be considering whether it’s the right fit for your company.
Approximately 75% of firms in the United States are uninsured, which is alarming considering the potential damage an unforeseen event can inflict on an organization. Nearly 50% of American companies impacted by a disaster won’t resume operations. Therefore, a comprehensive protection strategy for your organization should include coverage against legal claims and business interruptions.
In this article, we will discuss the claims covered by business liability insurance and its benefits.
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Claims Covered by General Liability Insurance
Today, small businesses play a crucial role in various U.S. states, including Connecticut, where they make up nearly 99% of all companies and employ over 735,000 people.
Many companies now offer general liability insurance in CT, which provides coverage to these small businesses for various potential claims, including:
- Bodily injuries: If a person visits your office in Connecticut and gets injured, the general liability policy will cover their medical expenses. This can include incidents like a customer falling in your office or store.
- Copyright infringement: This comes into play when your company uses someone else’s work without their consent.
- Advertising injury: This occurs when a business defames another business owner, person, or organization.
- Reputational harm: If you make negative or controversial statements about another company in a news interview, it can harm their business. General liability insurance can help in such situations.
- Property damage: Sometimes your business may be legally responsible when a person’s property is damaged. This can include damages to a client’s property or home during a business visit.
All the liability claims mentioned above are common, so it’s important to ensure that your business is properly protected with the right insurance policy. As an example, slip and fall claims typically cost around $20,000.
On the other hand, if your company faces a reputational harm lawsuit, you could be looking at expenses of up to $50,000. A general liability insurance policy helps manage unforeseen situations that your business may encounter.
Cost of General Business Liability Insurance
Research suggests that the monthly premium for general liability insurance is approximately $42. However, the cost of the policy will vary depending on factors such as the company’s size, current business conditions, and the location where you operate, such as Connecticut, as well as the level of security you require.
Brooks, Todd & McNeil state that today, leading providers in this niche offer solutions that simplify the decision-making process for businesses. These service providers have extensive experience in meeting the needs of commercial businesses, non-profit organizations, and more within the state.
General Business Liability Insurance: 4 Key Benefits
Saying yes to the business liability insurance for your business comes with several benefits. The most prominent ones include:
Security Against Staff or Employee Actions
There’s an ancient adage that says skilled help is hard to come by. Even when you do your best to retain the best employees, there’s a chance that you won’t be immune to misconduct by a few individuals on your team.
This category encompasses a range of incidents, from accidents to defamation, that lead to injuries, reputation loss, or property damage. In specific situations, general liability insurance coverage can cover third-party lawsuits. Additionally, you may want to think about adding professional liability coverage to your insurance separately.
Security Against Any Data Breach
Data security is of the utmost importance. Your company must have liability coverage when it holds customer information, including employee names and residential addresses, on file. Companies are protected from data breaches with the inclusion of an electronic data liability clause in insurance policies.
It’s essential to keep in mind that you may need to seek recourse if the general liability policy doesn’t cover specific scenarios. Cyber liability coverage is another option that can be helpful.
Helps Minimize Financial Losses
Today, various types of insurance policies can help you avoid situations that could pose problems for your organization. Several methods are available to secure both you and your organization. Therefore, obtaining business insurance is essential to protect the organization in the event of a covered loss or a lawsuit.
In the event of an accident, you may be responsible for the costs of repairs, replacements, legal fees, and medical bills when the organization lacks insurance. The lack of funds for such expenses can significantly impact your organization.
Can Increase Client Contracts
Several customers require businesses to have general liability insurance. Are you wondering why? It’s because no one wants to be held accountable for your mistakes if you happen to make any.
There’s a possibility that customers might perceive your lack of a plan as an attempt to avoid claims. Having general liability insurance can significantly enhance trust and open the door to bigger and newer company ventures.
Conclusion
Any business in today’s competitive market can face various risks. An organization may be sued by multiple parties, including employees and customers. Such claims can result in constrained cash flow, significant losses, and disruptions in daily operations.
In such situations, a general liability insurance policy can protect both corporations and individuals from the potential of being sued or held liable for harm, malpractice, or negligence. The policy helps defend the insured against any monetary judgments and costs for which they may be legally responsible.
