A lot goes into running a company, and any owner should make sure they have suitable insurance coverage. Despite that, as many as 90% of small business owners aren’t confident that they have adequate insurance.
There are various types of insurance that a business can have, and general liability insurance is one of the most common. Plenty of businesses can benefit from having a solid general liability insurance policy. But how important is it for your business?
Let’s take a closer look at this business insurance option so you can determine whether or not you should have it. Keep reading for more.
What Is General Liability Insurance
General liability insurance is a broad commercial insurance policy that covers a business’s general liability exposures. This includes things like physical harm to individuals or property damage. Additionally, it covers errors in advertising materials.
Note that it doesn’t cover a business for damage to its own property or that of its employees, only the property of others. These can be covered by commercial property insurance.
Is General Liability Insurance Important?
Some types of insurance are more important than others, and general liability insurance isn’t one to ignore. Without suitable protection, a simple incident could have a serious impact on your organization.
Depending on the nature of your business, there could be a sizable risk of property damage or physical injury. Without general liability insurance, you could end up having to pay significant amounts of money.
Even if your business is well managed and your location properly looked after, accidents can always happen. In just a few seconds, something can go wrong, and you might have a lawsuit on your hands. This can happen if an accident or injury occurs anywhere on your property.
It’s not easy to predict these kind of situations. Having a robust general liability insurance policy can ensure your business is always protected.
Do All Businesses Need It?
It’s worth noting that general liability insurance isn’t a state requirement for businesses in Colorado. Different jurisdictions (including cities and counties in Colorado) have their own requirements for insurance. In terms of general liability insurance, it’s not required in Colorado Springs.
Despite that, it’s still highly recommended for many businesses. Ultimately, it comes down to the nature of your business and the inherent risks. Some business types and industries that really should have general liability insurance include:
- Contactors
- Construction
- Retail shops
- Cafes
- Service providers
- Artisans
- Craftsmen
Essentially, any business where there’s a risk of injury or property damage should have general liability insurance to ensure the business is protected.
With that in mind, general liability isn’t a one-size-fits-all solution. Two different businesses can have very different policies. A professional insurance company will be able to help you find the most suitable coverage for your business.
Finding the Right Policy for Your Business
Of all the business tips you could get, “insure your business” could be one of the most important. General liability insurance will help you make sure your business is secure in the event of an accident.
DC Insurers is a leading insurance provider based in Colorado Springs. We’ve been helping businesses throughout Colorado find suitable insurance for over a decade. Schedule an appointment today to get your free quote.