There are so many opportunities to incur a law suit in today’s business environment, you’ve got to marvel at the sheer bravery of anyone willing to open a business. Fortunately, we have insurance policies between us and the tort lawyers. As a business person, you need a minimum of three basic policies to protect your assets from the litigious among us: property insurance, workers’ compensation insurance and general liability insurance. Here’s what you need to know when looking for general liability insurance quotes.
General liability insurance protects the assets of a business from lawsuits filed as the result of injury or damage due to negligence or acts of omission caused by the business’s owner or employees. Covered claims typically include personal injury, property damage and damages resulting from slander or false advertising claims. You can buy it bundled in with your business owners’ policy, but the limits of your liability coverage in a bundled policy are usually quite low and may be inadequate for your particular situation.
Assess your situation and to determine if you might be better off with a dedicated general liability insurance quotes. For example, evaluate the perceived risk that is likely associated with your type of business. If you work with volatile chemicals the likelihood of being sued is a lot greater than somebody who owns a florist shop, which means you’ll need more general liability insurance coverage.
Understand your state’s track record. Does it routinely find in favor of the plaintiff and hand out big damage awards? You’re going to need higher limits on your general liability insurance.
What does your policy cover? Look for general liability insurance quotes that pay the cost of defending yourself in court against a covered claim or lawsuit. You also want coverage for general damages and compensatory damages. (Compensatory damages are the funds needed to return the injured party or his damaged property to pre-claim status.) Punitive damages – awards intended to punish the offender – typically are not included in a general liability insurance quote. For that, you’ll need umbrella coverage.
You can keep your general liability insurance quotes low, by preventing or lessening the chances you’ll have claim made against you. A documented workplace safety program, ongoing employee training, high product quality control processes and, of course, a spotless record can all help you get affordable general liability insurance.