As a business owner and operator, your company is your livelihood. You pour your heart and soul into its operation, but are you doing enough to protect it?

In many states, it is required by law that you carry some kind of business insurance if you will be working with or serving the public. Knowing what – and how much – coverage you need is more of a personal choice, though. Personal and sometimes confusing!

General Liability

In most cases, general liability insurance is the appropriate minimum when it comes to insurance coverage. A general liability policy will cover liability claims made against your business by third parties for injury or property damage.

Why is it so important to carry general liability insurance? Because the average cost of a slip and fall injury – one of the most common types of claims that business owners encounter from third parties – is $20,000. A general liability policy will cover those costs; your business’s budget might not.

If you handle advertising for your business, have a social media or online advertising presence, work directly with consumers or operate a site or brick and mortar site that is open to the public, you need general liability protection!

Examples of General Liability Coverage

General liability goes beyond protecting you in the event of a slip and fall injury on your premises. One of the most costly types of liability claims that you might encounter as a business owner involves a claim of reputation harm. When making claims in your advertising, you might compare your products or services to a competitor, only to have them claim that you have caused damages by doing so. With a general liability coverage plan, you will be protected against the often-astronomical cost of these claims.

What Does General Liability Not Cover?

Every insurance policy has its limits. General liability is best for overall protection, but its boundaries end with third party claims. If you or your own staff members are injured or have property damaged by your business or on business property, the related expenses will not be covered. In most areas, you are required to hold worker’s compensation coverage for this very reason.

For more information about the lengths and limitations that general liability and all types of commercial insurance coverage provide, contact the Phoenix legal experts at Capital Insurance Services. We can help you choose the right amount of coverage for your business and budget.