This year has been a whirlwind for so many of us, bringing changes in our personal life, frustration in finances and strategy adjustments for business. No matter your business’ size, there are always risks associated with being an entrepreneur and business owner. That is where general liability insurance comes in. As the name states, general liability insurance, also known as commercial general liability, covers injuries or property damage claimed by a third party. Here, the Mid-Atlantic insurance professionals at Unity Insurance discuss the intricacies of general liability insurance, how this can affect your business and why you should verify and update your coverage with the help of insurance professionals.
What Does General Liability Insurance Cover?
As a business owner, especially during this time, sparing extra cash to account for insurance may be put on the back-burner. However, it is vital that you take the time and allocate the appropriate finances to ensure that your business remains protected, no matter what comes your way. As we enter into the new year and face a slew of challenges and uncertainties, why take additional risks? By preparing for the new year by establishing thorough insurance coverage, you are able to focus on what is really important, your daily business operations.
General liability insurance covers multiple claims, the most common being third-party bodily injury, third-party property damage, advertising injury and reputational harm. When it comes to third-party injury or property damage, this can occur for a variety of reasons. If an individual falls at your place of business and is seriously injured, they can sue you. Additionally, if you are a service-based business that causes property damage to a client’s home, you may be held responsible if you do not have general liability insurance. Advertising injury occurs if your business uses someone else’s media, such as photos or videos, without their consent. Finally, if you or one of your employees states something about another individual or business online that is not true, they are able to sue you for libel or slander.
How Can General Liability Insurance Protect Your Business?
Did you know that around 75% of businesses do not have adequate insurance, and many of those are unable to reopen after a disaster? As a small business owner, many individuals think that their personal insurance is sufficient for covering their business insurance needs. But, what happens when your business is in danger after a claim is filed against you? By not preparing with general liability insurance, you face the risk of not only ruining your reputation, but being unable to financially recover. General liability insurance can protect your business from these claims, and also help cover costs related to legal fees and settlements, compensatory damages, punitive damages and non-monetary expenses such as pain and suffering.
Has General Liability Insurance Been Impacted By COVID-19?
In the midst of the coronavirus pandemic, businesses have had to adjust their safety procedures to ensure client and customer health. As your company looks at updating or expanding your insurance policies for the coming year, be sure to account for risks that COVID-19 has posed. You may fall victim to legal repercussions if an individual believes that the actions of your employees directly correlated with injury or death related to COVID-19 exposure. If you are concerned about COVID-19 risk and potential liability claims, speak with a qualified insurance professional, such as those at Unity Insurance, to ensure that your plans are both relevant and comprehensive.
Discuss Your Options With Mid-Atlantic Insurance Professionals at Unity
As we near the end of 2020, you should begin thinking about your business’ insurance now. Preparing for the new year throughout these winter months can help you avoid pitfalls in your business strategy, mitigate risks and allow you to focus on running your business without fear of financial strain due to insurance claims. At Unity Insurance, our team of insurance professionals has decades of experience serving small and medium sized businesses across Maryland, Washington D.C. and Virginia. To see how our team can assist you throughout this next year, contact our Baltimore office by clicking here.