Understanding General Liability Insurance For Small Businesses In 2023
Running a small business in 2023 can be challenging, especially with the unpredictable economic conditions. As a small business owner, you need to protect your business from unexpected risks that may arise, such as property damage or lawsuits. This is where general liability insurance comes in handy.
What is General Liability Insurance?
General liability insurance is a type of insurance that protects your business from third-party claims of property damage, bodily injury, and advertising injury. This policy covers the costs of legal fees and settlements if someone sues your business for damages.
Why Do You Need General Liability Insurance?
As a small business owner, you are responsible for any accidents that happen on your premises, whether it’s a slip and fall accident or damage to someone’s property. Without liability insurance, you would have to pay for these damages out of your pocket, which could be financially devastating for your business.
What Does General Liability Insurance Cover?
General liability insurance covers a wide range of risks, including: – Property damage caused by your business operations – Bodily injury caused by your business operations – Medical expenses for injuries that occur on your premises – Legal fees and settlements if someone sues your business – Advertising injury, such as copyright infringement or defamation
Types of General Liability Insurance
There are two types of general liability insurance policies: occurrence-based and claims-made policies.
An occurrence-based policy covers claims that occur during the policy period, regardless of when the claim is reported. This means that you are covered for any incidents that happen while the policy is active, even if the claim is filed after the policy has expired.
A claims-made policy covers claims that are reported during the policy period, regardless of when the incident occurred. This means that you are only covered for incidents that happen while the policy is active and the claim is reported within the policy period.
How Much Does General Liability Insurance Cost?
The cost of general liability insurance varies depending on the size of your business, the industry you operate in, and the level of coverage you need. On average, small businesses can expect to pay between $400 and $1,500 per year for general liability insurance.
In conclusion, general liability insurance is an essential policy for any small business owner in 2023. It protects your business from unexpected risks and gives you peace of mind knowing that you are covered in case of a claim. Make sure to shop around and compare policies to find the best coverage for your business at an affordable price.