We live in a world that has become increasing litigious. Even the tiniest of mishaps that might have little to do with your product or employees can lead to large lawsuits. Think McDonald's and hot coffee. Do you really need general liability insurance? Business owners really can't do without it. Along with property insurance and worker's compensation insurance, liability insurance is essential for every company to carry whether you work out of your home or in a high-rise office building.
Many businesses have a few different types of insurance to consider such as life insurance, company health coverage, product liability and more. It should be relatively simple to combine all your plans with the same insurance company. You might call this grouping of insurance products a business-owner's policy or BOP. A BOP traditionally bundles like plans together such as property and liability insurance, into one policy. Life insurance and health coverage might be bundled in an HR plan. Since a bundled policy might not carry enough in coverage limits many businesses consider additional liability insurance.The amount of coverage your business might need depends on a few factors:
- Perceived risk. What is the amount of risk associated with your type of business? If you and your employees work with heavy equipment or caustic products your liability needs would be greater than those that work with general office equipment and standard cleaning chemicals.
- The state in which your business operates. Your insurance broker or agent can guide you to the insurance policy limits that match the damage awards typical to your state.
What does your general liability policy cover?
- Liability claims for bodily injury
- Property damage
- Personal injury
- Advertising injury (damage from slander or false advertising)
- Compensatory and general damages