Why Small Business Owners Need General Liability Insurance
As a lawyer, I advise that small business owners should consider obtaining general liability insurance to protect their businesses from lawsuits filed by dissatisfied customers. General liability insurance is a broad insurance policy that covers the business owner from various types of unintentional harm that might occur on the business premises including bodily injury, property damage, and personal injury.
This type of insurance policy helps to pay for legal expenses, such as court costs and attorney fees, and any damages awarded to the claimant in the event of a lawsuit. General liability insurance does not typically cover intentional acts, such as fraud or discrimination, and some policies may have coverage limitations or exclusions, so it is essential to review the policy carefully before purchasing it.
In addition to general liability insurance, small business owners may consider other insurance policies, such as:
- Professional liability insurance (also known as errors and omissions insurance) for businesses that provide professional services, such as accounting, legal, or medical services, to protect against claims of negligence or malpractice.
- Product liability insurance for businesses that manufacture, distribute, or sell products, to protect against claims of injury or property damage resulting from the use of their products.
It is important to consult with a licensed insurance broker or attorney to determine the appropriate insurance coverage for your specific business needs. Additionally, it is recommended that business owners regularly review their insurance policies to ensure adequate coverage and to identify any potential gaps in coverage that may require additional insurance.
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