Why Your Business Needs Commercial General Liability Insurance Coverage

Whether you run a retail shop, contracting company, or financial institution, an unexpected accident can happen at any moment. Without the right coverage, a single accident can affect your company’s financial future.

Commercial general liability insurance coverage can protect your small business from a range of costly claims. Learn how it works and why it’s an essential coverage for any business owner.

What You’ll Learn About

  • What does commercial general liability insurance cover?
  • When do you need commercial general liability insurance coverage?
  • What types of businesses need general liability insurance?
  • Why is general liability insurance important?
  • How much general liability insurance do you need?
  • How to find the right policy

What Does Commercial General Liability Insurance Cover?

Commercial general liability insurance, also known as business liability insurance, covers claims that can result from normal business operations, including:

  • Bodily injury to customers or clients visiting your premises. For example, a customer could slip on a wet floor and fall, injuring their back.
  • Property damage, such as cabinets that your crew installed falling and damaging a client’s walls and countertops.
  • Personal injury, which can include harm to another’s business or reputation resulting from libel, slander, intellectual property infringement, and other acts. For example, if a competitor accuses you of using a similar image in your logo, they may claim copyright infringement.

If a customer or client sues your business for one of these reasons, your general liability insurance policy will help pay for legal fees, settlements, and other related costs. General liability insurance can also cover the costs of repairs and medical payments to help prevent a lawsuit. For example, if a customer breaks their arm in your store, your policy may cover their medical bills. Your policy may also cover repairs to a customer’s property if you cause damage.

When Do You Need Commercial General Liability Insurance?

While general liability insurance isn’t required by law, some scenarios may require you to have it. Here’s when commercial general liability insurance coverage may be a necessity:

Signing a Contract

In order to work with other companies, they may require you to give proof of liability insurance before entering a contract. For example, a contractor may need to show a certificate of insurance before landing a contract for a commercial renovation.

Applying for a License

Some licenses, such as state contractor’s licenses, real estate licenses, and other professional association memberships, require general liability coverage for applicants. You may not be able to practice in your field if you don’t secure coverage.

Securing a Lease or Mortgage

Before signing a lease or getting a mortgage for your business, you typically must show proof of general liability insurance.

What Types of Businesses Need General Liability Insurance?

All small business owners can benefit from general liability insurance coverage, but some have more risks than others. Having adequate coverage is especially important for businesses that are open to the general public, operate at third-party sites, and advertise their operations, such as:

Why Is General Liability Insurance Important?

Even if you don’t need insurance for a contract, license, or lease, general liability insurance is still essential for nearly every small business. One accident could lead to a lawsuit that your business may not have the resources to defend against. With commercial general liability insurance coverage, you don’t have to pay out-of-pocket for lawsuit costs or medical bills that could drain your savings. Additionally, it can protect you from losing personal assets if your business is sued.

Need a Commercial General Liability Insurance Policy for Your Arkansas Business? McGhee Insurance has been serving our small business neighbors since 1999. Schedule a consultation today to discuss your options.

How Much General Liability Insurance Do You Need?

Having the right amount of general liability insurance coverage can be just as important as the coverage itself. Your coverage limits determine how much your commercial general liability insurance policy will pay for one claim and all claims over the course of your policy term. You can raise your general liability policy limits with an excess liability policy or umbrella policy.

A commercial insurance agency can help you determine the limits you need to adequately cover your company’s risk. They take several factors into account, including the type of business you run, the number of employees, your client base, location, and business size.

How to Find the Right Commercial General Liability Insurance Policy

Finding a business liability policy that covers your risks while staying within your budget isn’t always easy. That’s where an insurance agency specializing in small business can help. Your agency will request quotes from several insurance companies, fine-tune your coverage to fit your needs, and find ways to save costs without sacrificing coverage. They can also adjust your coverage during your policy period as your company changes, so you continue to stay protected if the unexpected happens.

McGhee Insurance Can Help Your Arkansas Business Get Covered

Whether you’re looking to buy your first commercial general liability policy or want to save on your current coverage, McGhee Insurance can help. We’ve been serving businesses in and around Little Rock since 1999, and we partner with the most trusted general liability insurance companies in the industry, including:

  • Liberty Mutual
  • Nationwide
  • Travelers
  • Auto-Owners
  • Philadelphia
  • Hanover
  • And more

Our experienced team leverages McGhee’s long-term relationships with our carrier partners to get the most affordable quotes for our clients. From contractors and restaurant owners to dealerships and daycare centers, we can help Arkansas businesses safeguard their assets and protect their future.

Send us a message today to start building the best commercial general liability insurance coverage for your small business.

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