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Liability Insurance

How to Get Comprehensive general liability insurance for small businesses?

By February 8, 2022February 19th, 2022No Comments

Commercial general liability insurance covers the common liability claims that most businesses encounter. The reason why commercial general liability insurance is called a comprehensive one is for the coverage extensiveness. It is a one-stop solution for businesses looking for a compact liability coverage policy. The insurance pays for the legal, injury, and damage expenses for third-party allegations against the business and business operation, inside or outside the office premise. 

Why do small businesses need insurance?

Small businesses need commercial general liability insurance more than large-scale enterprises. Why? Because the resources and assets in a small business are limited. If the company gets a lawsuit filed against them from a client or gets imposed with a heavy penalty for bodily injury to a third party, then it can be difficult to manage the expenses. A liability coverage plan with extensive offering can bring much-needed financial support during the crisis period.

Commercial general liability insurance has a basic policy structure that focuses on four coverage aspects. However, it depends on the buyer if they want to include features in the insurance policy. The four coverage aspects are – 

  • Third-party bodily injury
  • Third-party property damage
  • Product liability and quality issues
  • Advertising infringement issues

Manage the business risks and threats

Even if you choose the basic insurance plan of commercial general liability insurance, you get a steady risk management tool. The mentioned coverage aspects are the most common business threats, irrespective of the industry in which you are functioning. With the insurance policy, you can create an effective risk management plan through financial aid. It ensures smooth business operation when there are allegations and penalties imposed on the business brand. 

Financial support during emergencies

Small businesses may not always have sufficient resources to meet the compensation amounts. In fact, some businesses cease to operate while combating the expenses for defense proceedings at the court and managing compensation charges. The insurance comes across as a comprehensive solution covering the financial requirements. So, in the long term, purchasing commercial general liability insurance is a cost-effective decision for a small business owner. 

No business can omit the risks related to property damage. The recovery expense can escalate if the damage concerns a third party like a client. It is a common cause for rented properties and machinery. For example – If your business operation damages a piece of machinery or equipment that belongs to the client, they can charge you for the damage restoration. Comprehensive liability insurance pays for the recovery cost. It safeguards your assets and ensures smooth business operability. 

Many small businesses may not operate in an industrial domain where they have to indulge in risky activities causing bodily injuries. But do you know, if a client falls on the wet floor of your office premises, they can bring charges against the business? It is a genuine and generic problem that any business can face at any time! Having a comprehensive insurance policy helps in meeting the medical expense and any other compensation charges. 

Advertising infringement can cause reputation damage and, the third party can even legally sue you. Understand this better with an example. Suppose the tagline of your business accidentally matches with the tagline of another company. The other company can bring copyright charges and impose penalties. It can even lead to a business halt. But with the assistance of comprehensive liability insurance, you can eliminate the worries. The insurance covers defense costs and other penalties. It can also include invasion of privacy, trademark infringement, libel, or slander. Small businesses often ignore such aspects, but it can bring down the company if not dealt with correctly. 

A combined insurance package for small businesses

From the above-discussed coverage aspects, you can see that commercial general liability insurance brings a comprehensive approach to dealing with business risks. A small business can gain from the insurance offering in the long term. It also helps the business to operate without any hindrances. The financial solution during an unforeseen crisis is an advantageous aspect of having a comprehensive insurance package. 

A cost-effective decision

A crucial question for all small businesses – Is purchasing comprehensive liability insurance cost-effective? It is true that small businesses have to take careful steps to purchase such insurance policies. While large-scale enterprises can afford more than one liability insurance for product, property, public, and other liability aspects, small businesses have to manage it on a consolidated budget. Hence, there can be no better alternative than comprehensive commercial general liability insurance covering product and public liability necessities. 

Benefits of getting the insurance

  • Zero worries of managing third-party damage claims
  • A financial solution in case of property damage and product-related issues
  • A compact coverage for medical expense coverage and damage coverage for third party bodily injuries
  • A hassle-free procedure to submit an insurance claim

Option to customize the features

If you can afford to purchase the add-ons of commercial general liability insurance, you can always go for them. Also, it depends on the specific industry in which the business operates to determine the utility of the add-on benefits of the insurance. You can review the add-on coverage features to buy them. 

Things to note while purchasing the insurance

As a small business owner, you cannot rely on the insurance policy utility without reviewing the inclusions and exclusions. There are multiple insurance companies at present. Most companies offer commercial general liability insurance. The price also varies. So, while purchasing the insurance policy, read the inclusions and exclusions thoroughly to ensure extensiveness. A reliable insurance broker is your ultimate guide in finding the best commercial liability policy for small businesses.

Connect to PlanCover

PlanCover, the most-trusted insurance broker, has the apt solution for your business. With PlanCover, you get commercial general liability insurance from the leading insurance companies. Specify the requirements and budget to the insurance experts. The team will fetch the most suitable insurance options for small businesses depending on your specific industry. Get in touch with their proficient team now to ensure a valuable deal. 

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