Every Small Business Should Consider Commercial General Liability Insurance

October 21, 2013

With small business insurance claims it’s truly a matter of when, not if.

It’s an unfortunate fact that bad things happen.  Accidents, oversights, misunderstandings – all can be unwelcome guests at the party of small business ownership.  Even if you’ve been in business happily operating claim-free for years, there’s always the possibility that something may go wrong.  And that something could result in your business being sued, which is why all businesses should consider purchasing business general liability insurance.

You may believe that your business doesn’t have enough assets to be sued.  Or maybe you think that since your business in incorporated you're protected from personal liability.  But anyone can be sued.  You may be held personally liable for business debts where the business is ravaged by lawsuits and monetary judgments. The short of it is this: You DO need business insurance.  A tailored policy is usually preferable, but for your “starter policy” general liability insurance is a good fit.  Also known as commercial general liability or CGL, this type of policy provides these basic coverages:

  1. Bodily injury
  2. Property damage
  3. Personal injury and advertising injury

In addition to covering the claims listed above, Commercial General Liability policies also cover the cost to defend or settle covered claims, even if the claims are fraudulent.  In other words, if someone sues you for having caused an injury or property damage without a real reason, you still have to defend yourself.  If you have CGL you're protected for covered claims. Still think you don’t need to consider business insurance? Check out this list of scenarios.