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Written by Adam Miller
What is General Liability Coverage, and Does My Business Need It?

Even with the economy continuing to feel the impact of Covid-19, many entrepreneurs are still pursuing their dreams and opening their own businesses. With the start of a new business comes several important decisions, such as finding an ideal location, hiring the right staff, and making sure permits, documentation, and financial protection are in place. One of the most important decisions a new business owner can make is having General Liability coverage to protect the immediate and long-term future of their new company. In today's Aegis blog post, we explain the basics of General Liability coverage and why all businesses need it.

What It Covers

General Liability Insurance works by protecting businesses financially in the event of a lawsuit related to an injury, accident, or damages. This policy pays losses arising from real or alleged bodily injury, property damage, or personal injury on a business premises or from the main operation of the business. General Liability offers a broad range of protection, including:

  • Property Damage – damaged property or the loss of use
  • Bodily Injury – physical injury on the commercial property
  • Contractual Liability – liability assumed by entering business contracts
  • Product Liability – injuries or accidents related to company products

Why Your Business Needs It

General Liability policies cover a wide range of possible liabilities and damages that companies can face in the course of running their business. Companies need General Liability coverage for two specific reasons: Companies are usually required to carry General Liability coverage in order to get business permits or commercial leases, and most cannot afford to cover the high out-of-pocket costs related to a liability claim. When companies have these policies in place, they provide the financial resources needed to cover liability claim expenses, such as court costs, attorney fees, damages, and other financial obligations. Without General Liability coverage, companies would likely not be able to survive the financial impact of a single liability claim without falling into deep debt or wiping out their savings.

Examples of How It Can Help

General Liability is important for all different sizes and types of businesses, but two of the industries that benefit the most from this type of insurance coverage are Retail and Restaurant companies. For example, a retailer might have a customer slip and fall on a wet area of their floor, resulting in an angry and injured customer. A restaurant owner might face liability claims if their waitstaff accidentally spills a hot dish onto customer while serving meals, leading to a painful burn and medical expenses. In both cases, the companies with General Liability would have the financial resources to cover liability claims related to customer injuries, medical expenses, loss of income, damages, attorney fees, and court cases.

General Liability is a cornerstone piece of Commercial Insurance coverage that businesses need in order to protect the immediate and long-term future of their company. Aegis Insurance & Financial Services is proud to offer a full range of comprehensive, reliable Commercial Insurance options for businesses of all industries, tailored to their unique needs. Contact Aegis today at 713-850-7622 for more information about our Commercial Insurance policies, or fill out our online form to request a free quote!

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