Commercial general liability insurance is an all-inclusive insurance policy that business owners purchase to protect their livelihoods in the instance of any unforeseen and unfortunate events. The purchase of a commercial general liability policy is often the opening move businesses make to protect their assets from losses due to property damage or employee disability. The financial safety measure that commercial general liability insurance provides allows businesses to continue their operations in a world in which both the sheer number of lawsuits and the dollar value of jury verdicts have increased in recent years.Commercial general liability insurance covers a business and its employees from damages attributable to numerous causes. These causes can include, but are not limited to, bodily injury, property damage, contractual liability, and damages from fire, natural disaster and explosion. Insurance benefits can include compensation for medical bills, equipment replacement and facility repairs. Business owners can purchase general liability policies as either stand-alone products or as part of a comprehensive business insurance plan.
General business liability insurance also protects a business owner faced with a lawsuit or other claim brought about by an outside party. General liability coverage includes financial liabilities the company incurs as well as expenses related to the company’s legal defense. Small business owners may need general business liability coverage to protect their personal assets from becoming targets of a lawsuit, as sole proprietorships and partnerships do not differentiate between assets held by the business entity and those held by the owners as individuals.
Small business owners should be aware of the limits on general business liability coverage. If the company faces a judgment that exceeds the limits placed on its policy, it must come up with the difference. For small businesses operating on slim margins, this difference can be a crippling expense. Business owners can either expand their coverage and pay higher premiums or add on excess or umbrella coverage to increase those limits.