As a small business owner, you may be legally responsible if another person gets hurt or if their property is damaged while at your business or because of something you did. Make sure your business is properly protected against risks or accidents. General liability insurance coverage protects your small business against claims by others of bodily injury or damage to their property. However, it does not protect your own personal property.
You should consider general liability insurance coverage if you or your employees:
Interact with clients face to face - If you visit a client’s place of work, or clients visit yours, there is always the possibility someone could get hurt and require medical treatment.
Have access to customer’s property - If you own a cleaning company and one of your employees breaks a vase while vacuuming a carpet at a customer’s home, general liability insurance could cover the cost of the vase.
Use advertising to market your company - If you promote your company and accidently use wording that is under copyright or trademark, general liability insurance could cover you if a claim occurs.
Use third-party locations for any business related activities - For example, architects should make sure that they’re covered with architects’ general liability insurance for injury or damage that might happen at a job site.
Enter into contracts that required general liability insurance - For example, many construction companies must have general liability insurance in order to be eligible to be awarded certain contracts.
The cost of general liability insurance coverage varies based on the size of your small business, the industry you are in, your location, and the amount of coverage you need.
