4 Reasons Why General Liability Insurance Is A Must For Contractors

Insurance Policy

General Liability Insurance is a type of insurance that provides a business with a way to protect its assets in the event of a lawsuit. This coverage can also help with third party bodily injury and property damage. The cost of this type of policy can vary depending on the coverage that is selected.

1. Coverage for third-party bodily injury

A typical general liability policy includes product liability coverage, which protects your company from claims of product defects. It can also cover property damage and accidents that happen on your business premises.

Bodily injury, or BI, is one of the most common types of claims (https://www.opic.texas.gov/auto-insurance/basics/). Whether it’s a customer who falls on a slippery floor, or a driver who has an allergic reaction to sunscreen, a claim of this kind can mean big money for you.

In fact, the average claim amount for a BI claim in the United States is about $18,417. This isn’t a surprising number, considering that a business is legally liable for any injuries it causes to a client while on its property.

2. Coverage for property damage

General is a type of insurance coverage that can be purchased to protect your business from claims. Depending on the size and industry of your business, it may be essential to have this kind of coverage.

The first step is to determine what your insurance policy will cover. This includes medical costs, legal defense, and property damage for your California contractor insurance. A good general liability insurance quote will cover the above mentioned items. Typically, these policies will also include a small deductible.

You should also know that general liability insurance is not just for large companies. It can be used by small businesses as well. If you run a small shop, for example, you could be held liable for any injuries or property damage your business causes to another party.

3. Coverage for libel, slander

Signing contract

This is a form of insurance that is designed to protect your business from defamation claims. It can cover costs associated with a lawsuit, such as legal defense fees and property damage.

Defamation is the intentional violation of another person’s rights. When a business is found liable for defamation, the company can be required to pay damages. This can include lost income, loss of reputation, and lowered esteem in the community.

There are many ways to protect your business from libel and slander. However, you should consider your business’s risk before acquiring coverage. The best protection is a solid policy that offers sufficient coverage.

To file a claim, you must be able to show that the statement was made with malicious intent. Having a lawyer can help you mount the least damaging defense. Whether you are a large corporation or a small business, you need to understand the risks of libel and slander. You need to work with an agency that has experience in your community.

4. Coverage for defense against lawsuits

When it comes to coverage for defense against lawsuits with general liability insurance, there are many factors to consider. A business may face many different types of claims and lawsuits, but there are four common categories to look out for.

Some of the most common types of liability claims involve property damage. For example, if a customer walks into your store and is injured, you will likely be liable for any medical costs incurred as a result.

There are several other types of coverage to consider, including product liability and director and officer liability. These policies will help protect your company from claims involving products you manufacture.

Bonus: Cost

One way you can cut your costs is to opt for a high deductible. A deductible is the amount you’ll have to pay in the event you need to make a claim. For example, if your company has a $1 million general liability insurance policy with a $500 deductible, you’ll only have to pay $500 to your insurer if you need to make a claim.

The actual premium you’ll pay for your general liability insurance will depend on a variety of factors, such as the type of business you run, your location, the number of employees you have, and your past claims history.