January 30, 2019
Sean Mulhern

4 Reasons That Every Business Needs General Liability Insurance

Without a robust general liability insurance policy, there is a good chance that a well-established enterprise won’t survive when something comes up

General liability insurance, otherwise known as business liability insurance, is a type of policy that is designed to suit the needs of almost any type of enterprise where coverage tends to be needed the most.

Whether purchased on its own or as a basic building block in a comprehensive umbrella policy, general liability insurance is a must in terms of successful risk management.

Alarmingly, up to 44% of small businesses make the mistake of passing up a general liability insurance policy until they can increase their bottom line, and they end up paying a dear price for their error.

The reality is that small and new businesses are particularly prone to going under. Unfortunately, it is no coincidence that half of all new businesses fail during their first 5 years.

Without a robust general liability insurance policy, there is a good chance that a well-established enterprise won’t survive when something comes up. More often than not, something does come up. Even home-based practises are no exception when it comes to the need to be covered for the basics.

Here’s why when it comes to building a robust insurance policy you need to start with general liability insurance.

1. Third-Party Claims of Property Damage

General liability insurance will cover you and your business for any kind of property damage.

This is especially important for businesses in the construction industry that tend to function outside of a regular office or regularly perform duties in public spaces.

2. Bodily Harm

Even if you maintain a relatively hazard free workplace, it is incredibly easy for accidents to happen, and if one of your employees is injured or a client is accidentally injured on your premises, you could be sued.

General liability insurance will cover you for any type of bodily injury. This is particularly important for industries that deal with high-risk situations on a regular basis.

3. Social Media Mishaps

Social media is a fantastic free marketing tool that all businesses should be taking advantage of.

However, using social media comes with a host of inherent risks. It is all too easy to unintentionally convey the wrong message.

If you are sued for slander, libel or invasion of privacy, your general liability insurance policy can maybe help.

4. Property damage

General liability insurance has you covered for any type of property damage.

This means that you will not be responsible for accidental damage to the property of a client, public property, or even damages to the property of a third-party.  

The construction industry is particularly vulnerable to these types of lawsuits because of the nature of the work that is regularly conducted outside of a regular office environment.

General liability insurance is typically just one building block of a fully robust insurance policy tailored to your business, and it is a foundational one that every business should start with.

There is no way to control everything, and if you are a contractor in the construction industry, it is absolutely crucial to have a baseline general liability insurance policy in place to ensure that you will be protected against many accidents that commonly happen.

Once you have a robust general liability insurance policy in place, it is easy to build a fully comprehensive policy tailored to the needs of your business from there.

If you want to find out about more of the protections that general liability insurance can offer, email me at sean@thebusinessprotectionteam.com. I have all the information and resources you need to get you covered.

Sean Mulhern
Commercial Insurance Broker