How Does General Liability Insurance Work?

Understand General Liability Insurance, The Coverage, Different Types, And What Is Right For Your Business.

General Liability Insurance for beginners is simple. Every business owner encounters the wonders of the importance of business insurance, let alone general liability insurance. However, we all care for our businesses and want what is best for them. That is why at some point, we stumble across general liability insurance.

The importance of general liability insurance is a considerable component for all businesses. The protection it offers can save you thousands of dollars in the event of an accident and gives you peace of mind knowing your business will never fall under in the event of an accident.

Interested in general liability insurance? LKA Insurance Agency has you covered and is ready to get you started on your general liability insurance policy. Contact us today for a free quote.

What is General Liability Insurance?

General liability insurance, also known as commercial general liability insurance (CGL), is necessary for all businesses. It covers your business in the event that your company causes bodily harm or property damage. Depending on your business, you can get this policy as a standalone policy or combine it with multiple business insurance policies.

At LKA Insurance Agency, we want you to understand the importance of general liability insurance for your business. We want to help you achieve general liability insurance by offering you a free quote and analysis of your business fundamentals.

What Does General Liability Insurance Cover?

General liability insurance covers any claims that can come about during normal business operations. Without the coverage, your business would have to cover all liability costs out of pocket.

Every business is bound to have an unforeseeable accident happen within its lifetime. That is why it is vital to have proper coverage so your business is protected from accidents and so that your business can avoid any hefty payouts.

What are the Different Types of General Liability Insurance?

General liability coverage covers a comprehensive arrangement of policies. However, GLI does not cover every kind of claim. Some aspects general liability covers include:

  • Third-party bodily injury: If an individual is hurt within your business, your insurance policy pays for liability coverage; therefore, helping to pay any medical bills and unexpected fees.
  • Third-party property damage: If your business works outside of a designated business office, property damage liability covers any repair or replacement costs if your business damages another person’s belongings.
  • Reputational harm: If an employee uses any form of slander or libel toward another, your general liability insurance can help cover any legal costs that will defend your business.
  • Advertising injury: If your business is sued for copyrights, general liability coverage has you protected in the event of being sued.

Why Does My Business Need General Liability Insurance?

Any liability claim is not uncommon, and out-of-pocket costs are expensive. A survey by Insureon claims that 1 out of 3 businesses filed an insurance claim last year alone, and the average out-of-pocket pay for liability claims is $35,000. Adding a lawsuit to the mix will just increase the out-of-pocket payout.

Without general liability insurance, your business would be paying for these costs all on your own, leading to a possible closure of your business.

In some cases, other businesses may ask you for a certificate of insurance or proof of insurance to do business with them. This can be a big hassle for companies trying to expand their business without general liability insurance.

How Do I Know Which General Liability Coverage is Right For My Business?

The best way to fully understand which liability coverage, and overall business coverages, are best for your business is to speak with LKA Insurance Agency about general liability insurance for beginners. We service businesses within the state of Texas, Utah, Louisiana, Arizona, and Oklahoma. We are an independent insurance agency that strives to give you the dependable, reliable, and affordable insurance that is best for your company.

We believe that every business should have general liability insurance in the event of an accident and we work with you to fully customize your policy so all aspects of your business are covered.

Get your general liability insurance quote for free today and get the coverage your business deserves.