Your business needs protection against the financial losses you may experience in issues of personal or property liability. Your day-to-day operations aren’t without some form of risk, and there are a number of incidents that could lead to litigation. Knowing the right insurance coverage to have is a key way to manage these risks.
Though there are many things to worry about from the standpoint of risks and exposures, the most commonly protected against include property damage, personal injury, advertising injury and auto accidents. Commercial general liability is a broad category of business insurance coverage that addresses three of these risks. Incident scenarios could include:
- While visiting your office, a client trips over the corner of the rug and is injured during the fall.
- While installing a piece of cabinetry in a customer’s home, your employee knocks over the ladder and breaks the light fixture.
- Your company becomes the target of a class-action lawsuit alleging your advertising brochures were full of misleading information.
There are hundreds of other possible incidents that could bring a claim against your company in these areas, and business insurance is generally able to step in and cover the costs of repair or replacement, medical expenses or legal defense and related costs.
Because of the general scope of coverage, business owners should make general liability insurance their first coverage purchase. Add-ons can extend the scope of the policy but never go without coverage.