Tips for Buying General Liability Insurance

Tips for Buying General Liability Insurance

When insuring your business, you will likely need general liability coverage. However, getting this coverage will require attention to detail and an understanding of what this coverage offers you. What are some of the things that you should consider when buying general liability insurance? How do you know which plan is right for you? Here are some important things to consider.

1. Understand Your Business’s Liabilities
   There are liabilities in every business, but these can vary even between two nearly identical companies. It is understandable why a grocery store might have different liabilities present than a clothing boutique. A consultant who works from home will face different risks from someone working in a carpentry shop.
   As a result, you will have to tailor your liability insurance appropriately to your company’s risks. While all plans might address certain specific liabilities, like bodily injuries or property damage, you might also need policy limits and extra coverage that is better tailored to your industry. Your agent can help you determine how to tailor your plan appropriately.
2. Remember that Liabilities Do Not Have to be Physical
   Liabilities can cause more than just injuries or property damage to someone else. They might cause them reputational damage or financial harm, too. Someone might allege that you libeled or slandered them, committed copyright infringement or defamed them through your advertising. Your liability insurance will usually offer this coverage through a benefit called personal injury coverage. However, if your plan doesn’t contain this coverage, you still might be able to buy it as an endorsement.
3. Understand Situations When Your Plan Will Pay
   General liability insurance covers harm done to others that you have a responsibility to repay. To do so, you might have to pay legal bills, settlement costs and other damages, third-party medical bills and other expenses. Therefore, your company’s general liability insurance needs to be structured so that you don’t sacrifice business assets as you try to pay for this damage. You will always need to structure your plan appropriately, and this might include buying extra coverage to receive higher benefits.
4. Consider a Risk Management Plan
   There are things you will need to do in your business to make it a safe operation. Proper risk management will reduce liabilities, and could help you avoid potential lawsuits and other insurance claims. Some of the practical risk managements steps you should take include:

• Keeping the business clean and marking safety hazards like wet floors or hazardous materials.
• Placing emergency equipment and hazard protocols around the business.
• Giving every customer full instruction on how to use your products.
• Training employees to spot safety risks and report them.
• Managing your company’s brand in ways that make it competitive, but not threatening to others.

Of course, proper risk management takes many hours and a lot of attention to detail. However, you can start this risk management with proper general liability insurance. We’re here to help you get it.