Commercial general liability insurance is suitable for all businesses that operate in the market. The good thing is that this insurance will protect your business from the risks associated with a fall, injury, accident, and other damages that your business activities cause to other people and their properties. One thing that many people do not know is that they cannot run away from the liability whether they have the insurance or not. If you are not covered by this policy, you’ll have to settle a claim by coughing money from your pockets. Unfortunately, this can be very expensive especially for a small business startup.
Below, we will look at the benefits that Commercial general liability has for you and your business
Table of Contents
Prevents a business from collapse
Everyone knows how expensive an accident settlement can be for you and your business. There are instances where a client falls and gets injured on your premises. This is as a result of tripping over the stairs, a slippery floor, or any other accident of that sort. In such a case, the customer may choose to sue your company for damages and compensation due to the injuries, cost of treatment, and the lost hours from work. This can top over $70,000 for both the settlement and the costs of the case. To a small business, such a figure can be a big blow that can ultimately end the business. However, by having the commercial general liability insurance cover, you will have such costs covered by the insurer thereby saving your business from the risk of a collapse.
Saves you money
The amount of money paid to get the Commercial general liability insurance cover is very minimal when compared to the total costs of the litigation. For example, depending on the risk level of your business, you may have to pay an average of $5,000 to 10,000. This is a small price to pay given the risks associated with liability litigation. If you do not get insured, you could end up paying the entire amount from your own coffers. Whichever way you look at it, you are better off with commercial liability insurance.
Peace of mind
I know you agree that there is nothing stressful as having to worry that something might happen to your customers at your business premises while you are not well prepared for it. Fortunately, Commercial general liability insurance gives you peace of mind knowing that the well-being of your business is protected even when something happens to your customers or their properties. As a result, you will be free to focus on other spheres of your business that matter most to you.
If your company is involved in doing contract based work, you may be better off investing in Commercial general liability cover. This is because there are some types of contracts that require you to produce proof of insurance. If you have already gotten this cover, this requirement will not be a problem for you.
Similarly, having the Commercial general liability cover will also increase your standing on the market. This is because your potential clients will see that you care for their wellbeing and thus, will be willing to work along with you. If you do not have this type of insurance, the credibility level of your business will come down. Therefore, when doing plans for your business, it is wise to include commercial general liability insurance in it.
Finding the right cover
At this point, it is important for any business owner to know that there are many types of commercial general liability insurance covers on the market. Therefore, it’s advisable to do the right market research in order to find the cover that best suits your needs. If you don’t have a professional to handle this right within your business, you could choose an insurance advisor to handle it for you. This professional will look for and assess all the possible risks associated with your business before proposing the best policy for you.
You can choose the right Commercial general liability based on the needs of your company, the budget, and the visible risks. Remember, every business is unique and has its own set of risks. But the general idea is that, if you have machinery in your company, the overall risk of injury and damage to the building is increased. This way, you need a comprehensive Commercial general liability insurance cover to ensure that you are fully protected.