No matter how small or large, your business is, having the right insurance is essential. From covering a third party’s medical bills in case of an accident on site to protecting against potential litigation claims, general liability insurance can be a lifesaver when the unexpected arises. However, many entrepreneurs and companies are unaware of their need for this type of coverage until it’s too late – so read on to discover why you should seriously consider investing in general liability insurance today.
1. To Protect the Company’s Assets
The most important reason for a company to have general liability insurance is to protect its assets. If the company is sued and found liable for damages, the insurance policy will cover the cost of the settlement or judgment up to the policy’s limit. This will help to ensure that the company’s assets are protected in the event of a lawsuit.
2. To Protect the Company’s Employees
Another important reason a company should have general liability insurance is to protect its employees. If an employee is injured while working, the insurance policy will cover the cost of their medical treatment. Additionally, if an employee is sued for damages caused by their work, the policy will cover the cost of their defense. This will help ensure that the company’s employees are protected from financial harm in an accident or lawsuit.
3. To Safeguard the Company’s Customers
Another reason a company should have general liability insurance is to protect its customers. If a customer is injured while on the premises of the business or if they suffer damages from using the business’s products, the insurance policy will cover the cost of their damages up to the policy’s limit. This will help to ensure that the company’s customers are protected from financial harm if they are injured or suffer damages from using the business’s products or services.
4. To Guard Against Property Damage
Another reason a company should have general liability insurance is to protect against property damage. If property belonging to a customer or third party is damaged while on the premises of the business, or if it is damaged as a result of using the business’s products, the insurance policy will cover the cost of repairs up to the limit of the policy. This will help to ensure that any property damage that occurs as a result of using the business’s products or services is covered by insurance.
5. To Comply with State Laws and Regulations
In some states, it is required by law for businesses to carry general liability insurance. In these states, businesses that do not carry this type of insurance may be subject to fines or other penalties. Additionally, many landlords and leasing companies require businesses to carry general liability insurance as a condition of their lease agreement.
Businesses need general liability insurance because it protects them from various risks, including third-party bodily injury, property damage, personal and advertising injury, and medical expenses. It is important to understand what your business is vulnerable to and purchase an insurance policy that fits your needs. If you are still determining whether or not your business needs general liability insurance, speak with a licensed insurance agent who can help you assess your risk.
