general liability insurance Archives - Page 3 of 3

Being the boss means you get perks like getting to do something you are passionate about on a daily basis. And make a living from it. What perk is better than loving going into work every day! But it also comes with a lot of responsibility. You’re responsible for your entire company. And there are plenty of risks in the business world no matter how small your business is. The best way to protect your company is with business insurance.

We can already see you rolling your eyes. There are so many stereotypes about business insurance it’s hard to know what to believe. We’re busting some of the most common myths to help you sort through all the misinformation. So you can start to look for the coverage that’s right for your business.

1.General Liability Covers Everything

As easy as it would be if this were true, it’s actually false. General liability coverage (GLC) is pretty comprehensive. But it still has limitations. Every business is different. And every business should have a policy built around its unique needs.

So, what does GLC cover? General liability covers things that fall into the following three categories:

Bodily injury and property damage – GLC will cover bodily injury or damage to property caused by you or your employees.
Medical expenses – Additionally, it will pay for any medical costs for anyone hurt on your property. And any injuries brought on by business operations offsite.
Personal and advertising injury -You will be covered for any libel or slander claims, as well as in case of a copyright infringement claim.

It’s very important to know what a general liability policy will cover. But it’s just as important to know what it won’t cover. Here are the more common exclusions, just to give you an idea of what your GLC may be missing:

Operation limitations – Policies for high-hazard businesses will have limitations. These limitations might deny coverage for some problems that arise from specific operations. Be sure to check your policy to make sure all of your business operations are covered.
Contractor and subcontractor exclusion – This means any work done by contractors you hire will not be covered. If your business is heavily based in construction, you will want to watch out for this.
Expected or intended injury – Any injury or property damage that is found to be intentional will not be covered by GLC.
First party damage – Any injury or property damage to yourself or your belongings would generally not be covered by GLC.
Product recalls – With this exclusion, any problems or costs that come with recalls to products you sell or use would not be covered.

While GLC covers the basics, the list of exclusions can go on and on. Every policy will have different exclusions. It’s best to check your policy to see what else your specific business might need.

2. My Home Insurance Covers My Home-Based Business

What if your workplace is in your home? Will your home insurance cover your business? Unfortunately, no. Even though your homeowner’s insurance covers your home and its contents, your business is separate. And your policy will not cover any losses associated with your business. But don’t worry, there are a few insurance options that can help:

Business property insurance – This covers damage to any equipment in your home that you use for your business. That includes computers, printers, furniture, appliances, etc.
There are plenty of commercial insurance options for a home-based business.
Liability insurance – If your business requires anyone coming into your home, this will cover any injuries or property damage.
Professional liability – This insurance is something most professionals need no matter where they work. It safeguards you from possible negligence or failure to meet standards.
Product liability – This coverage will protect you from any damage caused by products you make, sell, or supply to clients.

If your home is your storefront, you’ll need to protect it just like any other brick and mortar business.

3. I Don’t Need Commercial Auto Insurance

If you don’t own a company vehicle, you might think that you don’t need commercial vehicle insurance. That is not entirely true. Just like your homeowner’s insurance, your auto insurance will only cover your car for personal use. For example, getting to and from work. If you get into an accident while working your personal auto insurance will not cover you.

You might need commercial auto insurance if you transport products or visit clients and worksites. You might even need coverage if you send or receive packages at the post office. These policies usually include:

Coverage for medical bills – No-fault or personal injury protection will cover the medical expenses of anyone injured in a car accident regardless of fault.
Uninsured motorist coverage – If you are hit by someone who doesn’t have insurance, or are a victim of a hit-and-run, this will cover any damages from the accident.
Comprehensive and collision coverage – This will cover any theft, vandalism, flood damage, or damage from an object hitting your car.

Even though your company doesn’t own your personal vehicle it still needs commercial insurance. During off hours your personal auto insurance will have your back. But during business hours you need commercial insurance to fill in the gaps.

4. Business Insurance Is Too Expensive

It’s tempting to try and find ways to save money for your business, but if you cut the wrong costs you could end up losing the money you were trying to save and then some. If you don’t cover your business properly, you open yourself up to any number of financial risks. And business insurance isn’t as big of an expense as you might think. Especially considering the money it could save you.

Let’s look at the average costs of some of the types of coverage we’ve talked about:

General liability – Around $88 a month
Business property insurance – Around $65 a month
Professional liability – Around $97 a month
Product liability – Around $100 a month
Commercial auto insurance – Around $167 a month

While those amounts do add up, and prices can differ depending on the risk and the size of your business. It’s still probably less scary than what you imagined. Now imagine you get sued and you don’t have coverage? Legal services can cost between $100-$300 an hour depending on the case. That doesn’t include what you might have to pay if you don’t win.

The Takeaway

The you pay price to insure your business is much less than what you’d pay without it. Having the right business insurance will give you peace of mind. Your insurance company will handle the legal worries while you focus on your business. You protect every other part of your life with insurance, so your business – your livelihood – should be no different. If you need help deciding what insurance best fits your business we’re here to help! EZ.Insure will help you tailor your insurance to you, so come to us for your free quote today. To get started, simply enter your zip code in the bar above, or speak to an agent directly by calling 888-615-4893.

Co-written by Brianna Hartnett

Just one single lawsuit can damage your business beyond repair, so there’s no doubt that you need liability insurance. But it can be a challenge to figure out what kind of commercial insurance your business needs. Different policies cover different risks and claims; in fact, one of the most common questions from small business owners is “What’s the difference between general liability and professional liability insurance?” Both cover different types of risks, and figuring out how each works can be confusing. Understanding how they compare will help you make the best decision for your business. You might even need both!

What Is General Liability Insurance?

brown gavel — *Court, attorney fees and settlements will be covered under general liability insurance.*

General liability insurance is the most basic kind of commercial insurance. It covers costs if a third party accuses your business of causing them physical harm, damaging their property, harming their reputation through slander, or advertising errors that infringe on their copyright. These policies are usually written on an “occurrence” basis, which means that all losses will be covered during the time of the policy period, regardless of when you file the claim. General liability insurance will cover expenses including:

Court costs
Attorney’s fees
Settlements
Judgements
Third-party medical bills
Third-party repair bills

What Is Professional Liability Insurance?

Professional liability insurance, which includes errors and omissions, or E&O, insurance, covers legal defense if a third party claims they suffered a financial loss as a result of your negligence. It is written on a “claims made” basis, which means that the damages had to have occurred within the active policy period or they will not be covered. Some of the claims that professional liability insurance covers include:

Negligence
Inaccurate professional advice
Failure to uphold contractual promises
Work that was not completed
Work mistakes or omissions

caucasian man and woman mad at an African american man in a suit sitting at a desk. — *Both insurance policies will cover you in the event of any damages to third parties.*

Coverage will typically pay for:

Attorney’s fees
Court costs
Investigator’s bills
Settlements
Judgements

How They Are Similar

Both protect against business liabilities and cover:

Damage to third parties.
Accidental damage, not intentional damage
Restricted coverage within a specific area; if you go outside that area you will not be covered.

How They Differ

The main difference between general liability and professional liability insurance is the risks they cover. General liability insurance will cover physical risks, like bodily injuries or property damage caused by your business’ daily operations. Professional liability covers financial losses resulting from negligence, errors, or omissions that occur when you provide your services to others.

Who Needs General Liability Insurance?

Every business owner should consider buying a general liability insurance plan to protect their assets. Accidents happen, and when you own a business, these accidents can be quite costly. You should consider general liability insurance if you:

black and white photo of the back of a woman sitting in front of a computer screen. — *If you have a home based business, then general liability is necessary. If you provide professional services or advice, then professional liability is necessary.*

Have customers visiting your location.
Rent a physical location.
Handle other people’s property.
Own a home-based business.
Sell, manufacturer, or distribute products.
Advertise your services.

Who Needs Professional Liability Insurance?

Professional liability insurance is important to consider if your business provides professional services and has specialized professional training. Some professionals might even be legally required to obtain this type of insurance. You should consider a professional liability insurance plan if you:

Provide professional or technical services or advice.
Are expected to maintain professional standards.

Some examples of people who should have professional liability insurance are lawyers, consultants, accountants, and technology inspectors.

Which Do You Need?

In many cases, you will need both policies to fully protect your business from an unexpected lawsuit. EZ.Insure provides licensed agents who are highly trained in commercial insurance and can help determine which policy better suits your business, or if you need the coverage of both types. We will compare all plans and find the plan that offers the most coverage at the best price. To get free quotes, simply enter your zip code in the bar above, or to speak with one of our specialized agents, call 888-615-4893.

Tag: general liability insurance

Busting the 4 Most Common Myths about Business Insurance