Ideally, we should monitor our business operations and see where we need more coverage each passing year. Often, our business grows, but we do not rethink the coverage limits our business needs. Once you ponder all the above questions, you will be pretty much aware of the liability insurance coverage limits you will need.īasically, the more risk you have, the higher limit you should have to support you. What is the experience level of your business? It is difficult to predict everything that can go wrong for the next year, but there are ways to calculate a rough idea about your general liability coverage limit.Īsk yourselves these fundamental questions about your business, and you will find yourself with a rough idea about your liability coverage limit! How Much General Liability Coverage Do You Need? Insurance can help you not only financially but with peace of mind and confidence that you are protected no matter what!īut the next question is, how much insurance do you need? In the absence of general liability, you risk business continuity due to these lawsuits. But, general liability insurance can be your rescue. Then your competitor can sue you for harming their reputation. Again, insurance can cover their losses and your legal costs!Ĭonsider you say that your company/product is better than a competitor’s on a TV channel. If you sell an automation part that malfunctions and damages the customer’s automobile, you might be sued. The insurance, in this case, will cover their losses and your legal costs. Again, your client might sue you for their losses. But she twists her ankle while being chased by a dog on your property she might sue you for her injury! Worry not the insurance can cover their medical bills and your legal costs.Ĭonsider, you are an event planning company, and you damage the tiles of your client while doing the decorations for the event.
Say you are a home baker, and a client comes to pick her engagement cake.
General liability insurance is a life-saving policy for businesses and offers the following coverages: It is also called business liability insurance and commercial general liability insurance.īut why is it needed in the first place? A very valid question!īecause general liability insurance protects you from many lawsuits related to bodily injury, property damage, etc., which can quickly occur but lead to many difficulties if you do not have insurance! So, let us know what general liability insurance is? General liability insurance is the first to strike my mind when we talk about must-have insurance policies for business people.
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