Every business should have liability insurance – but what policy limits are right for your company? A lease or contract may require liability insurance with a specific limit. For guidance, it is advised that you speak to an experienced insurance agent. Many business owners should have higher limits than the coverage required for a lease or contract. 

Which Type of Business Liability Insurance Do You Need?

General liability insurance is available for all types of companies, and in several forms, including:

• Commercial Property Insurance: These insurance policies cover the cost of reimbursement for property that has been lost, stolen, or vandalized.
• Business Liability Insurance: We live in a litigious society, and protecting your business against the financial risks associated with a claim or lawsuit could not be more critical. These problems are covered with business liability insurance.
• General Liability Insurance: General liability insurance may be the ideal insurance for small businesses. It provides coverage against claims related to bodily injury, property damage, and personal injury claims and lawsuits. 

How Much General Liability Insurance Should We Purchase?

Your business activities have inherent risks. If you manufacture or sell a product, you need to be insured against the risk of a claim. If a consumer claims to have been injured by your product, or the company is accused of false advertising, a failure to warn, or another legal issue associated with your products, your defense costs are covered.

When determining the policy limits that are right for a business, several factors must be evaluated.

• Bodily Injury Claims: A customer, vendor, or visitor to your facility may be injured on your property and file a claim to recover damages. Your general liability insurance policy should have a policy limit that covers a high-value bodily injury claim.
• Attorney and Court Costs: Even if a lawsuit is filed against your business without merit, you need a qualified attorney to pay for your legal representation and court costs. Your general liability insurance policy should cover the cost of defending against a claim or lawsuit.
• Property Damage: If one of your employees causes property damage, your business will be held liable. Your business liability insurance should cover the cost of paying for the damages related to your business, either in-house or caused by an employee performing work-related duties off-site.
• Medical Payments: If an employee, visitor, or vendor is injured at your facility, a claim or lawsuit may be filed to pay for medical treatment. Your general liability insurance protects against this eventuality.
• Advertising Claims: Your business may face legal repercussions if another party sues you for improper use of an image or false advertising. 
• Slander, Libel, or Defamation: A lawsuit could be filed against your business if another party claims that you or one of your employees has diminished their professional standing due to libel, slander, or defamation.

Choosing the Right General Liability Insurance Policy

Your general liability insurance should provide the maximum level of coverage at a price that fits your budget. Speak to one of our experienced agents to help you find the best policy for your business.