On any given day, entrepreneurs juggle a long list of responsibilities. With their busy schedules and sometimes tight budgets, they might not be prepared to deal with the cost and time demands of a customer being injured on business property or damage to someone’s property their business is legally responsible for.  Business owners who have general liability insurance in place can protect themselves from these financial landmines, ensure that their enterprise will not suffer a significant loss of capital, and prevent damage to their reputation. Here are several frequently asked questions about how this type of coverage works.

4 FAQ About General Liability Business Insurance

What does it cover?

Most standard policies pay for the expenses associated with bodily injury or property damage losses occurring at your business or as a result of your business activities. These include customers who are injured on your company’s property and property damaged in the course of your business activities. General liability insurance can cover medical expenses to an injured party and help provide a defense for lawsuits filed against you. Depending on the policy, other covered costs may include  claims for false advertising, libel and slander, and property damage claims.

What’s not covered?

General liability insurance policies vary with each company. However, one of the main exclusions is for injury claims made by your employees. Work-related business vehicle accidents are typically not covered either, as a commercial auto policy serves this purpose. Injuries caused by defective products manufactured by your company are also excluded from general liability insurance policies, as is poor workmanship. The policy will not cover employees who physically assault customers or willful and malicious acts. 

Who needs general liability insurance?

If your business deals with the public, vendors, and other clients regularly, coverage can protect you from many unexpected scenarios. Firms who rely on the use of advertising, marketing, and social media channels should also secure insurance to protect them from customer claims. Small businesses that want to arrange contract work with larger companies will likely need to show proof of coverage first.

Does Ohio require businesses to have general liability insurance?

While it is not required, businesses may need coverage before signing a commercial property lease. Landlords strongly prefer companies to have a policy in place so that they have the financial means to pay for any damages to the property.

Since 1970, Coggeshall-Simmons Insurance has helped businesses from a wide range of industries secure reliable and affordable coverage. Based in Coolville, OH, the family-owned firm has a team of professional and experienced agents who will help ensure your general liability insurance meets your unique commercial needs. To learn more and receive a free quote, call (740) 667-3111 today. You can also request a quote online.