Why do you need General Liability?
Because General Liability (GL), protects your business from a 3rd party’s claims of bodily injury, property damage, and personal injuries like slander and libel.
General Liability policies provide an attorney to defend your business but also provides money to pay for damages arising out of covered claims you are legally responsible for.
What kind of businesses need Liability Coverage?
Every kind of business needs this important lawsuit protection, such as Retailers, Contractors, Hospitality businesses like restaurants, bars, and hotels, Manufacturers, Caterers, Grocery stores, Delicatessens, and Offices like Realtors, Attorneys, and Doctors.
Retailers, restaurants and offices need GL to cover slips and falls on their premises – Landlords will require it!
And Contractors need GL in case they cause bodily injury or property damage while they are working at a job site.
And for most small businesses, after registering your business and getting whatever license and equipment you need, it should be the first thing you buy for your business.
What kind of claims are covered by general liability?
Here’s some actual Claims covered by General Liability policies from one of our top carriers:
A new spa opened up in an up-and coming area of town that was a mix of residential and business properties. As a client was leaving the spa, a stray dog ran up and bit the client in the leg, requiring medical attention including stitches. The spa’s General Liability policy covered the costs of the client’s injury.
A real estate broker was holding an open house at a property they had listed for sale. A potential buyer slipped and fell on the stairs leading to the house. The broker was liable, but was protected by their General Liability policy.
At a wedding, the photographer was setting up their tripod when it slipped and fell into the cake. Although no one was hurt, the bride made a claim for property damage. The photographer’s General Liability policy covered the claim.
How is general liability rated?
General Liability policies are priced according to the type of business.
- Retail Stores, Restaurants, and Groceries are usually rated on Annual Sales.
- Contractors like Plumbers, Carpenters and Electricians are usually rated on Annual Payroll.
- Schools, Hotels, and Gyms are usually rated on how many units (people) they serve.
- Offices, warehouses are usually rated on the square footage they occupy.
- Some businesses are rated on a combination of some or all of these factors.
is GL expensive?
For most classes of small business, General Liability is inexpensive!
When you are start your business, your sales and payroll are low, therefore the General Liability price will also be low.
Many startup businesses can buy $1,000,000 of GL for as little as $500 a year.
And prices increase as your business grows.
As sales, payroll and units increase, the risk of lawsuit goes up and so does the price for General Liability.
As the GL gets more expensive, theoretically, you should have the money to pay for it from increased revenue.
Conclusion: Every business needs liability coverage
General Liability is necessary to protect a business from lawsuits.
Its affordable and gives you peace of mind.
GL rates are low for startups, and only increase as your business grows – so its very affordable.
When you’re a small business owner, there is no better feeling than to know you have coverage to pay for these unforeseen events.
And even better: the company provides an attorney to defend you and pays damages too!
So contact Cronin Insurance Agency when you are ready for General Liability Insurance.
We will shop our markets to get a great company at a great price!
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