Businesses may purchase various insurance packages, but general liability insurance is one particular type that cannot be ignored. It is a unique policy that protects a business financially against claims made by third parties for bodily injury, damage to their property, or lawsuits filed by individuals or other professional agencies. If you want to purchase general liability coverage for your organization, read on to learn about its types and how to choose the right plan.
Common types
These are some of the most common general liability insurance plans:
- Cyber liability insurance
It covers companies vulnerable to online hazards like data breaches and cyberattacks. - Commercial general liability (CGL) insurance
It offers extensive coverage for various potential risks, including claims due to bodily harm, property damage, personal injury, and advertising injury. - Errors and omissions (E&O) insurance
It defends companies offering professional services, such as consultants, doctors, and lawyers, against allegations of negligence or errors and omissions while providing those services. - Product liability insurance
It protects companies who produce, distribute, or sell products if the product injures or damages a third party. - Employment practices liability insurance (EPLI)
It protects firms against claims relating to employment, such as wrongful termination, harassment, discrimination, or retaliation.
Events like a worker’s injury on site, potential slander, and data breaches can lead to huge losses for your business. General liability insurance coverage provides essential protection against such unexpected events that could financially affect the company. Moreover, if a third party files a lawsuit against your organization, this policy covers the costs of legal fees. Depending on your company’s needs, it can be purchased as a stand-alone or semi-comprehensive policy.
Tips when purchasing a policy
If you are considering getting general liability insurance, here’s a guide to choosing the right plan:
- Identify your company’s risks and potential issues to determine how much funding you need. Various online tools can help determine the required level of coverage.
- Compare multiple insurance companies and find the best plan at the lowest price. Variables like exclusions, discounts, and coverage limitations should be considered.
- Understand the policy’s terms and conditions, including what is included and excluded. Whenever unsure, ask questions and get clarification.
- Depending on your company and the risks you face, you may need additional protection, such as product, cyber, or professional liability insurance.
Following these recommendations is essential to get the right policy and protect your company from unexpected events and significant financial loss.
Price of a general liability insurance plan
The premium you pay can vary on various factors, including your company’s size, location, nature of work, and your coverage amount. Small companies with low-risk activities generally pay less than larger companies with higher risks. The premium can also vary depending on the type of policy you purchase.
Working with a knowledgeable general liability insurance broker is important to find the best plan for your company based on your risk and specific needs. Depending on the situation, you may also want to consider getting additional protection, such as cyber, commercial, or product liability insurance.