General Liability Business Insurance Coverage: The Basis for Company Protection

A general liability insurance policy is a good start toward protecting your business. Many companies follow contract requirements with regard to the amount of general liability coverage they're required to carry. While these requirements should certainly be adhered to, the amounts dictated are sometimes short of the amount a prudent business owner will choose to carry.

The potential for accidents to people and property is great. Just consider the number of people and the amount of property you and your employees touch on any given business day. If you add it up, you'll probably be surprised at the amount of liability you could be responsible for.

Granted, most days are accident-free. Even if you have a large number of employees, you've probably taken precautions to be sure that they handle themselves and their products with as much care as possible. No one sets out to cause damage, but accidents happen. It's simply part of being in business.

A commercial general liability policy will cover those people and property you and your employees come into contact with. One of the greatest advantages of a general liability policy is that it recognizes your liability outside your own workplace. The policy will cover you against damage, even if those accidents occur at a customer's location. That means that an employee who is working at a client's location miles from your office is still covered under your general liability business insurance policy.

But what if the problem occurs on your own property, and what if it wasn't an accident? A general liability policy, including business property coverage, will typically cover theft or destruction of your business property at your own place of business. There are limitations to the amount of coverage, and you will want to make sure you have enough coverage to replace damaged or stolen items.

Some companies may call a general liability policy “comprehensive commercial insurance.” In general, the coverage will be similar, but be sure to carefully compare the details of the policies if you're considering making a change in your insurance.

Carrying a general liability policy as part of your business insurance package may be an option you haven't considered. If this is the case, take a minute to look over the coverage. A client may require you to carry general liability insurance of a specific amount, but you may discover that the minimum requirements may not be sufficient to protect your business.