General Liability Insurance

What Is General Liability Insurance?

If you are held liable for any of the most common incidents that can occur in a company, such as a consumer injury or damage to someone’s property, your general liability policy offers financial security. When you are forced to defend an allegation of libel or defamation. 

General liability insurance covers hazards, regardless of your industry, that affect almost every company. For small businesses and self-employed professionals, it is the most expensive insurance, and it is usually the first policy purchased by new businesses. 

What is the Definition of Liability Insurance?

General liability insurance is part of larger business insurance called liability insurance. Liability insurance covers only third party risk. If you are a company owner or self-employed, it may be your clients, suppliers, or other individuals who you associate with who are not your workers. 

Liability insurance does not cover anything that happens to you, your staff, or equipment and tools. 

There are some other kinds of liability insurance, in addition to general liability, including: 

  • Professional liability insurance, which usually covers charges due to work-related accidents and deadlines missed. 
  • Commercial auto insurance, which provides liability coverage for auto accidents and property damage. 

With general liability insurance and other kinds of business insurance, it is possible to get confused. That’s how some insurance providers refer to commercial liability insurance, business liability insurance, or limited liability insurance as general liability insurance. 

Who needs General Liability Insurance?

Almost any business will benefit from general liability insurance because, even if you only work at a home office or workshop, it protects the common risks faced by business owners. 

General liability insurance is not usually mandated by statute, although it may be required for a business license by certain government entities. Until they sign a contract, it is often normal for clients and commercial landlords to ask for a certificate of insurance. 

In a number of industries, CouvertLA has helped thousands of unique business forms find the correct general liability coverage, including contractors, construction companies, professional services, fitness instructors, cleaners, and many more. 

Why is General Liability Coverage important?

You may still be asking yourself, “why do I need business general liability insurance?”. Even if I am careful I can manage without purchasing liability business insurance?

Here is what makes general liability insurance for small companies so important: 

It Helps You Get More Jobs

The coverage of business liability insurance demonstrates that your company is efficient and trustworthy. It gives customers peace of mind that you are going to take responsibility for your mistakes. 

If your future customer has an option between your business and other business that does not have insurance, it might give you a competitive advantage. Before they sign a contract with you, several larger clients need coverage. 

It Lets You Run A Legal Business

Only if you have active general liability insurance and a certificate of insurance, certain states and towns will only issue a business permit. If a professional company certifies or accredits your company, you may also be required to keep your general liability insurance active. 

Your Commercial Lease Might Require General Liability Insurance

Your landlord may also insist on seeing your general liability insurance certificate if you intend to lease commercial property. Coverage is also required because it demonstrates that you will have the financial security required to cover costs related to property damage or accidents in the rented space related to your company. 

 It Lets You Focus On Growing Your Business

It gives you peace of mind when you have general liability insurance. If a client slips and falls on your property, you will not have to think about what you will do, or how you would pay for a new vase if you mistakenly broke one in the house of the customer. 

Getting business liability insurance means that you can focus on increasing your company instead of feeling worried about what could happen. 

What does General Liability Insurance cover?

General liability business insurance protects you against unforeseen costs associated with certain forms of incidents that can result in injury, property that you do not own, and allegations of libel or defamation. 

Bodily Injury

General liability insurance covers medical expenses up to the policy limits.  

Accidents That Cause Physical Harm To Someone

Accidents are not 100% inevitable, and, sadly, individuals who come into contact with your workers and your company are physically affected by certain accidents. 

For instance, when you are loading your van in the morning, you put your toolbox down on the sidewalk for a moment. A jogger trips over the box and breaks an arm. You could be liable for medical bills in this situation, you will have to pay out of pocket to cover all related expenses if you do not have general liability insurance. 

Injury-related lawsuits typically fall into three groups by general liability insurance: 

Loss of Income

Your insurance will compensate for your loss of income if you are found liable for an accident and the injured person is forced to miss work. 

Pain and Suffering

In certain situations, allegations relating to pain and discomfort will also be protected by the insurance, which applies to the physical or emotional stress that may arise as a result of the accident?

Damage to Someone’s Property

You are protected by the general liability insurance policy for the harm you do to someone’s property. For small companies, the right general liability insurance covers both major and less serious injuries.

Here are some examples: 

Landscaping

During your pre-inspection of the lawn you were mowing, you did not see a tiny rock. The rock goes airborne and shatters a large plate-glass window as the mower goes over it. The customer demands you pay for the expense of the replacement.

Construction

For a renovation design project, you park your van in an office parking lot. You slip and scratch the CEO’S shiny red Porsche as you pull out your tools. At a licensed dealer, you have to pay for the expense of having the whole car repainted.

Beautician

Your assistant beautician offers a manicure to your customer and drops the nail polish tube. On the floor, it smashes, splashing scarlet nail polish all over the costly Gucci handbag of the customer. The customer needs you to pay for a bag replacement.

Copyright Infringement, Libel, and Slander

Personal and advertisement injury allegations typically arise when you are accused of invading the privacy, copyright, or advertising infringement of another, and character defamation.

With these examples, learn more about each category:

Breach of Privacy

You take some pictures and use them on your website as an example of your work after renovating a customer’s old bathroom. Your customer sees the pictures and gets really irritated. They sue you for violating their privacy by using images without permission from their house.

Copyright Infringement

Your personal trainer company refers to you a “The Rock.” The actor Dwayne “The Rock” Johnson sees them, and you are sued for copyright infringement by his management team because you used his signature nickname.

Defamation of Character

Your new name for your marketing campaign tests your biggest rival and argues that he delivers substandard facilities that do not comply with local laws. The company owner sues you for character defamation because he insists that your campaign is untrue.

Bodily injury

Someone falls over your tools and breaks their leg.

Bodily injury

Someone falls over your tools and breaks their leg.

Advertising harm

An employee bad-mouths a customer and the customer sues you.

Advertising harm

An employee bad-mouths a customer and the customer sues you.

Libel, slander and defamation

An employee bad-mouths a client on social media and the client sues you.

Libel, slander and defamation

An employee bad-mouths a client on social media and the client sues you.

Property damage

Within your customer’s home, you drop heavy duty equipment and destroy their hardwood floor.

Property damage

Within your customer’s home, you drop heavy duty equipment and destroy their hardwood floor.

Court and legal fees

Even if you have done nothing wrong, you need an attorney to protect yourself against a lawsuit.

Court and legal fees

Even if you have done nothing wrong, you need an attorney to protect yourself against a lawsuit.

Medical payments

At your job place, someone is hurt and wants you to pay for medical bills instead of suing you.

Medical payments

At your job place, someone is hurt and wants you to pay for medical bills instead of suing you.

What is not covered by General Liability Insurance?

There are several different scenarios protected by the general business liability policy, but it doesn’t cover anything. Depending on your company, you may need to purchase other kinds of liability of insurance.

Professional Liability Insurance

Professional deficiencies are not protected by general liability insurance. You’ll need professional liability insurance for that, also known as insurance for errors and omissions. When a client argues you gave poor advice, made a mistake, or missed a deadline and caused financial harm, it will cover related costs.

Workers’ Compensation Insurance

In certain states, if you have personnel, you are legally required to have insurance for workers’ compensation. Health costs for work-related accidents or illness missed pay, and essential liability provisions for the employer would be protected by a worker’s comp policy.

Commercial Auto Insurance

If you are driving for business purposes, most personal auto insurance plans will not protect you from accidents or harm. If you or your workers use a business-owned car, you are required by law in most states to have commercial auto insurance.

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Injuries to you or your employees

Injuries to you or your employees

Company vehicles

Company vehicles

Damage to your equipment or tools

Damage to your equipment or tools

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Products you produce

Products you produce

This is a concise description of the policy and does not supersede the documentation of the policy. Please contact us if you want full details.

How much does General Liability Insurance cost?

It is difficult to address the issue, “how much is insurance for general liability?” Each small business is different, so the cost of general liability insurance for each one is different. A few problems are based on your general liability insurance quote:

  • What is your industry? According to the risks of your business, the best liability insurance providers like CouvertLA charge you. An accountant should not have to pay the same cost of insurance coverage for general liability as a general contractor.
  • What is the maximum sum that you need for coverage? The response to ‘How much does insurance for general liability cost? ‘Depends on the cap of aggregates. This is the maximum amount of protection you could receive from your general insurance policy for liability. The higher your overall coverage cap, the greater the insurance premiums for your small business liability.
  • Your deductible. You can pay less for general liability insurance for your small company if you have a higher deductible. We do not charge a deductible on our general liability insurance plans at CouvertLA Insurance, so you will not need to worry about it.

How to get Liability Insurance online?

Having general liability insurance online is one of the best ways to purchase business liability insurance. You can buy policies and view your proof of insurance with CouvertLA in as little as 10 minutes.

To pay the amount that works for you, choose between 3 types of general liability business insurance.

CouvertLA keeps the insurance premiums or small business liability costs low while offering you phenomenal support. To get these liability insurance perks, you won’t pay extra:

Share your insurance certificate on your computer or mobile device as much as you want.
Whenever you like, add an extra insured person to your policy.
Add “primary or non-contributory” language to your policy whenever you like.
Add a “waiver of subrogation” to your policy whenever you like.
Instead of paying a lump sum annually, distribute the costs over the year by paying weekly.
No additional costs or cancellation fee.
Great customer support over the phone or via email, with simple answers to claims and inquires.

Head office address:

16300 Crenshaw blvd, unit 213, Torrance, CA 905004

Call for help:

310.496.6778
(657) 845-1497

Mail for information:

info@couvertla.com
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