NYC Insurance Blog

5 Questions to Ask Before Purchasing General Liability Insurance

Small business owners should purchase general liability insurance to protect their assets. Business owners have incurred substantial financial losses from unplanned events like accidents, injuries, and property damage. If you do not have the right insurance coverage, an unforeseen event can make you shut down your business. General liability insurance is crucial because it protects you from property damage, bodily injury, and personal & advertising injury. 

Before purchasing a general liability insurance policy, be sure to ask these five questions:

How Much Liability Coverage do I Need?

The first thing you should consider when buying general liability coverage is the amount of coverage. The coverage varies depending on factors like location, nature of the business, industry, and perceived risks. Business owners should choose the right coverage because the insurer covers the liability costs up to the coverage limit, and you must pay the rest. 

What Are my Legal Obligations?

Ideally, not all small business owners are legally required to buy insurance. However, in some, general liability insurance is mandatory, depending on the industry or state. It is essential to purchase general liability insurance to settle unexpected claims, for example, a slip and fall accident. Suppose a customer is injured on your property, and you are responsible for the injuries; you will pay for their medical expenses, settlement, and legal fees. If you cannot cover these expenses, you will have to close your business or go bankrupt. General liability insurance protects business owners from such incidents. Give us a Call for a Quote Today!

How Much Does General Liability Insurance Cost?

General liability costs depend on claims history, location, business size, industry, coverage limits, and other factors. Therefore, shop around and compare quotes to get the best deal when purchasing general liability insurance. For business owners with general liability insurance, it is prudent to review it yearly to ensure they have enough coverage. 

Is General Liability Insurance the Only Coverage I Need?

Although general liability insurance provides you with much-needed coverage, it might not be the only type of insurance you need to buy. To protect yourself from other risks, here are other forms of coverage you need:

• Worker’s compensation – this insurance coverage protects you if an employee suffers from a work-related injury or illness.
• Professional liability – this form of insurance protects professionals against mistakes, negligence, malpractice, or misrepresentation claims initiated by clients.
• Cyber insurance policy – protects your business from data breaches and related cyber security issues. 
• Commercial auto insurance – if you own company cars or use your car for business purposes, commercial auto insurance provides coverage if you or your employees are at fault.

How Can I Reduce General Liability Risks?

Although general liability insurance protects you from unforeseen liability costs, you can reduce liability risks. It is important to note that claims history affects premiums. Therefore, if you play your part and minimize general liability risks, you can lower premiums significantly. You can mark the exits, provide adequate lighting, and erect signs where needed. To reduce liability risks, always follow safety laws and regulations and consider the well-being of your employees, general public, clients, and competitors.We can give you a Free Quote Today!

Finally, it is crucial to work with an insurance company or agent you can trust to help you purchase the general liability insurance tailored for your business.

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