Different types of business insurance can come into play – no matter what kind of a company you are running and the nature of your business. Commercial general liability insurance is one type your company may need. Ultimately, knowing as much as possible about it beforehand is worth knowing as it will inform your decision. With this in mind, this guide aims to answer several of your questions and explains why it may be wise to get it for your company.
What is commercial general liability insurance?
Before you go any further, you will have to know what commercial general liability insurance means. Essentially, the main purpose of getting coverage like this is that you can cover many general claims made by the public against your business. There is a range of different areas that it covers. A few of the main examples include bodily injury of some description, a range of illnesses, or property damage caused by something sold by your business. It could also be an injury that happens on your company’s premises. If you don’t have this insurance in place, there is always the opportunity for an expensive lawsuit to come your way.
Reasons to get commercial liability insurance
Now, let’s go into some more detail about exactly why you would need to get this type of insurance in the first place.
Protect your business financially
The first and most obvious reason you would need to get commercial general liability insurance through an experienced broker like kbdinsurance.com is to protect your business financially. Otherwise, there is every chance you won’t be legally and financially protected if an accident or a lawsuit comes in from a product you have created. Whether you win it or not, this has the potential to be highly expensive. You may not have unlimited cash reserves to draw upon when you are only running a small business. Therefore, it is bound to be especially important that you have the backup of a good insurance policy.
Give yourself peace of mind
Since this type of business coverage can cover a whole range of different areas, it is certainly important to know that you have a level of protection in case a lawsuit is brought against your company for any reason. The longer that your business is in existence and the bigger it grows, the more and more likely that this happens to be. Therefore, the necessity of having it certainly increases over time.
Defend against business reputation loss
Ultimately, when some of these lawsuits could be brought against your company, they will not be valid. However, suppose you are not in a position where you can properly defend yourself. In that case, there is every chance you will take the reputational hit without being able to mount a proper defense. Ultimately, business reputation loss can be potentially crippling for firms, both large and small. This is particularly true in the modern world of online reviews and social media posts that are highly shareable. However, if you can defend yourself and have the insurance in place, this can be greatly reassuring.
Helps with business continuity
One of the hardest parts of running a business is ensuring it continues and is not at risk. However, a lawsuit or another claim made against it can be potentially devastating. While insurance will not be a silver bullet that protects against everything, it can certainly be invaluable. Ultimately, the more protection you have, the better you can run your business with a calm and clear mind. You also know that you have certain financial protections that you may or may not need to call upon.
As you can see from this brief list of reasons alone, there is no doubt that commercial general liability insurance is an invaluable part of many companies, both small and large. Like other types of insurance out there, it often hums away in the background, and you do not realize that you need it until you need to make a claim. However, the actual business benefits can be significant. Not only is it all about ensuring that you have financial protection in place, but a big chunk of the importance comes from the peace of mind of having it there in the first place. Overall, this cannot be easily replicated, but if you do not have it, there is always a nagging feeling at the back of your mind.