What is Commercial General Liability Insurance?

The purchase of general liability insurance for your company should be considered one of the highest priorities among the various commercial insurance plans available. Even if you run your company out of your home, you still need general liability coverage, as standard homeowners' insurance policies do not cover this.

What exactly is covered under a commercial general liability insurance policy? This kind of insurance covers legal representation and compensation for damages if you, your workers, or your merchandise or services cause injury or financial loss to a third party. General liability insurance can provide defense and compensation if your company is wrongly accused of causing damage by a third party.

Let's take that and dissect it:

A client may accuse you, the business owner, of being negligent for failing to maintain the floor of your establishment dry, which led to the client falling and hurting himself. You run the risk of being sued for causing him bodily harm. Your general liability insurance can cover your legal defense costs and any damages awarded.

A customer may claim that one of your employees caused damage to his vehicle by accidentally running into it while carrying items. That client may file a lawsuit against your company, claiming that one of your employees was irresponsible and caused property damage. Your company can be safeguarded by purchasing general liability insurance, which will pay for legal representation and settle any validated claims.

For various reasons, one of your customers may accuse your company's goods or services of causing him mental or physical harm. If the customer decides to sue your business, general liability insurance can protect you financially.

There are numerous scenarios where a client could allege that they suffered physical harm or property damage and then sue your organization. Being cautious in everything you do is the first line of defense against any threat. Make sure you and your employees don't engage in careless behavior, and train your staff to do the same. The second line of defense is to ensure that you have sufficient general liability insurance just in case something goes wrong.