General liability insurance, also known as business liability insurance, is a policy that protects your business from claims resulting from your day-to-day operations. This insurance policy will protect your small business from medical bills, bodily harm, advertising injuries, and other related liabilities.
General liability insurance is a broad policy with extensive coverage that helps small businesses cover a wide range of liabilities. Although this policy covers a lot of variables, there are some occurrences that are not covered by it. Here are some of the claims which a general liability insurance will cover for your business:
- Reputational harm: includes statements made by you that may negatively impact your competitor’s business.
- Copyright/trademark infringement: involves using another business’s rights or identity without proper authorization or royalties.
- Third-party property damage: covers damages done to another individual’s property during the course of your business.
- Third-party bodily harm: covers slips, falls, or other accidents that occur on your business premises affecting your clients or employees.
- Advertising injuries: these may occur while you are promoting your business and accidentally discredit your competitor’s name.
Excluded Coverage
Following are some of the claims which will not be covered by a general liability insurance:
- Commercial auto accidents: This includes accidents caused by you or your employees while driving to work. However, such accidents can be covered by commercial auto insurance.
- Employee illness/injury: This includes any illnesses or injuries that your employees might have sustained due to their work-related responsibilities.
- Damage to business property: This policy will not cover any damages to your business property.
- Professional service errors: This includes mistakes in the professional services provided by you. Legal costs relating to such mistakes can be covered by professional liability insurance.
- Claims over the limit: Any claim that exceeds the coverage limits of your general liability insurance will not be covered. Instead, you can make use of a commercial umbrella policy to cover the same.
Running a small business is tough, and without the appropriate coverage, you will leave your business exposed to uncertainties that may threaten its existence. General liability insurance will help you protect your business so that you do not have to worry about liabilities resulting from your operations.
General Liability Insurance in Bellevue, Washington
Although general liability insurance is not compulsory in Washington, it is highly recommended that you get this coverage for your business. It protects you from claims and can be used to supplement other mandatory insurance policies, including workers’ comp and commercial auto insurance.
If your business is located in Bellevue, Washington, and you are thinking of getting a general liability coverage, here are a few things that you need to consider:
- Does your business involve handling your client’s property?
- Do you work close to your customers or clients?
- Does your business rent or own any property?
- Does your business have a physical location that your customer can access?
If the answer to all these questions is yes, then you need general liability insurance to cover your business. Although this policy is not mandatory, some states may require certain businesses in high-risk industries such as construction to purchase the policy.
Frequently Asked Questions
No, the policy is not mandated by law, but if you fail to protect your business from liabilities, it may result in huge expenses for you. There are a lot of uncertainties in business, and it is important to protect yourself against them.
Yes, the policy has a fixed out-of-pocket sum (deductible) that you can agree to pay before your coverage starts to pay. General liability policy premiums are considered as a business expense; therefore, they can be written off.
No, general liability insurance only covers the claims of third-parties. In this policy, you are regarded as the first-party. To protect your property, you need additional coverage, such as a business owner’s policy.
No, they are not. General liability insurance covers your business from liabilities arising from physical injury to people or damage to their property caused by your daily operations, whereas professional liability insurance protects your business from claims arising due to professional errors or mistakes.
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