As a business owner, you may be wondering, “When is liability insurance needed?” or “How much liability insurance do I need?” General liability insurance is an essential coverage that many businesses need because it helps protect them from certain lawsuits and risks that can come up during normal operations.
This coverage, also known as commercial general liability insurance or business liability insurance, helps cover claims that your business caused:
If you don’t have liability insurance coverage, you risk having to pay for these kinds of claims out of pocket. Lawsuits can put you out of business, which highlights the importance of liability insurance for your business. It can help protect you so you can focus on running a successful business.
Most businesses need general liability coverage. Sometimes, other businesses or organizations require your business to have this insurance. This can include when your business:
You can use a few key questions to help determine how much liability insurance your business needs. These include:
Insurers use this information to examine the amount of risk your business faces. They’ll analyze your history of insurance claims and the type of business you run. If something stands out as too much of a risk, your insurance cost may increase or an insurer may not offer a policy.
However, in most cases, you’ll be able to get coverage with The Hartford. We offer broad coverage options that may fit your needs. Get a general liability insurance quote today.
States don’t typically require businesses to carry general liability insurance. But even if it’s not required, it’s good to have. Small businesses can benefit from this coverage because it helps protect against risks that can come up during normal operations. While small business owners try to run their company perfectly, mistakes can happen. If they do, having the right insurance coverage can help protect your assets and give you peace of mind.
Let’s say a customer visits your store. On their way out, they slip on a wet floor and break their wrist. Because this is a covered loss under general liability coverage, your insurance company can help pay for their medical expenses.
Our business liability insurance gives businesses a range of protection. Find out more about the different types of coverage and associated limits that can help protect you and your business.
Liability and Medical ExpensesKeep in mind that these coverages only help protect your business up to the liability limits of your specific policy. If a liability claim exceeds your policy’s limits, you’ll have to pay the difference. That’s where commercial umbrella insurance can help, extending the limits of certain liability policies to help cover expensive claims.
Your liability policy also likely includes aggregate limits. This is the maximum amount of money your insurance company will pay for certain types of damages. So, it’s important that you go through your policy carefully and make sure you understand how it works.
If you need help, our specialists can answer your questions and make sure you have the right amounts of coverage for your business.
Your business’ liability insurance doesn’t cover every type of claim. You’ll need other types of insurance to help cover claims of:
Running a small business is hard work. In addition to everything you do to grow your company, you also face different risks that can occur from everyday operations. If you’re still not sure if you need liability insurance, consider these facts:
If your business has employees, most states require you to have employer’s liability insurance. The good news is that this coverage is a part of workers’ compensation insurance policy. It helps protect your business if an employee or their family sues you for a work-related injury or illness.
If you’ve realized your business needs liability coverage and you’re wondering how to get liability insurance, we can help. We make it easy for you to get a liability insurance quote online. And when you work with us, you’ll have peace of mind knowing an insurance company with over 200 years of experience has your back.
Our specialists can help you every step of the way. Whether it’s getting the right type of coverage or helping with a claim, we’re here for you. Get a general liability insurance quote today.
1 National Floor Safety Institute, “Slip & Fall Quick Facts”2,3 The Hartford, “The Hartford Reports: More Than 40 Percent of Small Businesses Will Experience a Claim in the Next 10 Years”
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The Hartford shall not be liable for any damages in connection with the use of any information provided on this page. Please consult with your insurance agent/broker or insurance company to determine specific coverage needs as this information is intended to be educational in nature.
The information contained on this page should not be construed as specific legal, HR, financial, or insurance advice and is not a guarantee of coverage. In the event of a loss or claim, coverage determinations will be subject to the policy language, and any potential claim payment will be determined following a claim investigation.
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