Want to start your own business? One thing you must look for is insurance. As a businessman, you have a higher-than- average risk of being sued, if someone sues your for causing property damage or bodily injury. In that case, a General Liability Insurance (GLI) is necessary.

General liability insurance is also known as commercial general liability insurance, which is one of the most important coverages you can buy for your business. Some businessman buys GLI as their first step to build their business financial protection, for it offers protection against a wide range of unexpected risks.

If your small business cause damage to other people, your GLI will protect you.

The coverage of general liability insurance includes:

Third-party bodily injury. For example, if a customer slips and breaks his wrist. GLI can help cover the costs of lawsuit and medical bills.

Third-party property damage. For example, if your equipment breaks a neighboring business’ window, your GLI can help cover the costs.

Reputational harm. For example, if you say something about a competitor’s product and they claim that it slanders their business and you were sued. GLI can help cover your legal costs.

Advertising injury. For example, if you were sued because another business said that your advertising is similar to theirs and hurts their business. GLI can help cover your costs to resolve the claim.

If someone sues you, GLI can cover many types of litigation costs, including legal team’s fees, witness fee, evidence costs and judgements. However, it does not cover employees’ work-related injuries or illnesses and damage to your own business property.

Like any other liability insurance, GLI protects you against claims from third parties. It’s true that GLI can be costly and it’s not required by law. Many businesses don’t think it’s necessary to buy a GLI. However, most businesses can’t survive a large liability claim against them.

For example, customer slip and fall accidents account for 10% of liability claims, and the average cost is $20,000.

Without GLI, you have to pay these all by yourself. Don’t regret until accidents happen.

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