Things To Know About General Liability Insurance
General liability insurance is a fundamental type of business insurance that provides coverage for common risks that any business might face. First Choice Agency offers general liability insurance in Queens, NY, Brooklyn, Farmingdale, NY, Deer Park, Massapequa, Amityville and surrounding areas.
This is a breakdown of what general liability insurance is, what it covers, and why it’s important:
- What Is General Liability Insurance?
General liability insurance protects businesses from claims related to bodily injury, property damage, and personal or advertising injury (like libel or slander) that may occur on their premises or as a result of their business operations. It is one of the most basic and essential forms of insurance for businesses of all sizes, often required by law or contract.
- What Does It Cover?
Bodily Injury: Covers medical expenses, legal costs, and settlements if a non-employee is injured on your business premises or as a result of your business activities.
Property Damage: Protects against damage to someone else’s property caused by your business operations, employees, or products.
Personal and Advertising Injury: Covers claims related to defamation, copyright infringement in your advertising, wrongful eviction, and more.
- What Does It Not Cover?
General liability insurance does not cover everything. It typically does not protect against employee injuries (covered by workers’ compensation), professional errors (covered by professional liability insurance), or intentional damage caused by your business or employees.
- Why Is It Important?
Without general liability insurance, a business could be financially responsible for paying claims out-of-pocket, which can be devastating, especially for small businesses. Lawsuits, medical bills, or property damage can cost tens of thousands of dollars or more, making insurance a vital safety net.
- How Much Does It Cost?
The cost of general liability insurance varies depending on factors like the size of your business, industry, location, and claims history. Typically, small businesses might pay between $400 to $1,500 annually.
- Who Needs General Liability Insurance?
Any business that interacts with clients, customers, or the public should consider general liability insurance. This includes retailers, contractors, consultants, and virtually all businesses that operate in physical spaces or provide services to customers.
In conclusion, general liability insurance is an essential tool for managing risk and protecting your business from unexpected financial losses due to third-party claims. Please reach out with any questions you might have, and we will be happy to help.