What Is General Liability Insurance?

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This type of insurance is sometimes called business liability insurance or commercial General Liability Insurance. General Liability Insurance protects your business from claims resulting from normal business operations. This can include allegations of bodily injury, property damage, and reputation damage. For more information on general liability and other business insurance policies, you can visit the NAIC Small Business web page.

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Who Needs General Liability Insurance?

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Any business, including self-employed contractors. Small businesses can benefit from General Liability Insurance because they will save out-of-pocket expenses if something goes wrong. Independent contractors can also benefit from General Liability Insurance. Often contractors don’t consider liability insurance, but an independent contractor can be sued just as easily as any other business owner. Liability claims can be costly, and without coverage, you will have to pay out of pocket. Independent contractors who should consider General Liability Insurance include:

• Construction contractors

• Plumbers

• Carpenters

• Electrical contractors

• Painters

• Repair contractors

• Handymen

• Masons

• Cleaning services

• Graphic designers

• Independent hair salon professionals

• Dog walkers

• Hotels

• and many more

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What Does General Liability Insurance Cover?

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General liability insurance protects independent contractors and small businesses in five different areas.

• Bodily Injury - This protection covers injuries a customer may experience at your business. The insurance can help cover medical bills.

• Property Damage - If you or your employees damage a customer’s property while conducting regular business, your general liability policy will pay for the damages. This is especially important for independent contractors who often work on other people’s property.

• Reputation Harm - General Liability Insurance helps protect you from slander, libel, and malicious prosecution. The coverage can help with legal fees that might result from these accusations. It can also help with judgment or settlement payments from a court case.

• Advertising Injuries - If your company is sued for copyright infringement, including improper photo crediting, your general liability coverage will help with any related legal fees.

• Damage to Premises Rented - If you rent property to conduct your regular business, this insurance coverage will also help you pay for any damage at your rental locations.

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What Doesn’t General Liability Insurance Cover?

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General Liability Insurance covers a lot of common claims that businesses face, but it can’t cover everything your business might need. Here are some other common claims that independent contractors and small businesses might encounter and what type of insurance can be helpful.

• Vehicular accidents that occur while driving for your work. Two different types of insurance can cover this type of claim. Commercial auto insurance will cover damage to the vehicle, while workers' compensation insurance can help cover the employee’s medical expenses. Independent contractors will usually rely on a personal health insurance plan instead.

• Any bodily injury or illness caused to an employee during work. This type of claim is handled by an independent contractor’s health insurance or by a workers’ compensation insurance plan taken out by a small business.

• Mistakes made in your professional service that might result in a loss of income are not covered by General Liability Insurance. Errors and omissions insurance or professional liability insurance is required to cover these claims.

• Damage to your tools, equipment, and property. This type of damage is covered by commercial property insurance instead of General Liability Insurance.

• Employment Practices Liability

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How Much Does General Liability Insurance Cost?

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The cost of General Liability Insurance varies because each business is unique. Each insurance underwriter will look at different factors when creating a General Liability Insurance quote. These can include:

• Business type

• Experience

• Number of employees (payroll)

• Size of business, location,

• Insurance claims history

 

For more information on General Liability Insurance policy for your business, request a quote or contact Slade & Collins Insurance today. We are located in Lexington, KY, and we proudly serve Kentucky, Ohio, Indiana, and Tennessee.