The Importance of General Liability Insurance for Every Business

Every business, regardless of size, sector or specialization, faces certain risks and exposures. Incidents affecting other parties may be particularly impactful, as you might face direct losses, as well as potential lawsuits and reputational harm. Planning your risk management and loss control processes with possible liabilities in mind should be a top priority, making general liability insurance a critical investment.

Why Is General Liability Insurance Essential?

General liability insurance is a core element of many businesses’ coverage packages. This type of policy can be true to its name by addressing many common risks, perils and incidents that might impact a wide variety of companies. Despite your due diligence and dedication to safety, you might eventually face the prospect of having to respond to incidents in which you’re allegedly responsible for other parties’ financial losses.

How Can Coverage Help?

Although exact policy details may vary depending on your coverage selections and insurance carrier, general liability insurance can typically respond to bodily injuries, personal injuries (e.g., slander and libel) and property damage affecting other parties. Consider the following scenarios:

• Imagine a client or customer is visiting your place of business, slips on a wet floor and falls, breaking their wrist. In this situation, you could be deemed responsible for their injuries, but your general liability insurance may insulate you from financial consequences by paying out to help manage medical expenses.

• If you operate a business where you dispatch employees to clients’ homes or locations or temporarily take possession of their property, such as for maintenance or repairs, you could eventually face situations in which you’re blamed for damage. Fortunately, in such situations, your insurance may issue aid and help pay to repair or replace affected parties’ property.

• If you advertise or market your business, including through the use of social media, you might eventually face accusations of being liable for personal or advertising injuries, such as slander or libel. Your general liability coverage may help limit out-of-pocket consequences for such situations, potentially covering legal expenses, settlements and judgments.

Learn More

Given the many situations in which general liability coverage may spare policyholders from potentially catastrophic losses, every Kennesaw, GA business should highly prioritize procuring appropriate insurance. Contact D. Ward Insurance Services today to discuss your options and find the right policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.