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General Liability Insurance

In the business world, risks are an inherent part of the game. While companies strive to provide quality products and services, there’s always the potential for accidents, injuries, or property damage that can lead to costly legal claims. This is where general liability insurance comes into play, providing essential financial protection for businesses.

What Is General Liability Insurance for Businesses?

General liability insurance, often referred to as commercial general liability coverage, is a fundamental component of risk management for businesses. It may offer financial protection against claims and lawsuits arising from third-party injuries or property damage on your premises or due to your business operations. Whether you’re a small startup or a well-established LLC, having general liability insurance is crucial.

What General Liability Insurance Covers

General liability insurance for businesses may form a critical financial safety net that can shield you from various unexpected events. Consider the following coverage features:

  • Bodily injury—If a customer or visitor is injured on your premises and sues your business, general liability insurance can help cover medical expenses, legal fees and potential settlements.
  • Property damage—Accidental damage to someone else’s property caused by your business activities is covered. For example, if you’re a contractor and damage a client’s property during a renovation project, your insurance can step in.
  • Personal and advertising injury—This coverage may help pay for losses involving third parties’ nonphysical injuries, such as slander, libel or copyright infringement.

What Is General Liability Insurance Cost Based On?

The cost of general liability insurance can vary significantly and is influenced by various factors, including the following:

  • Business size—Larger businesses with more employees and higher revenue typically may pay more for coverage.
  • Industry—Some industries have higher inherent risks and may require more extensive coverage, affecting the cost.
  • Location—The geographic area in which your business operates can impact premiums. For example, urban areas may have higher rates due to increased exposure to risks.
  • Claims history—A history of previous claims against your insurance policies can lead to higher premiums, as carriers may consider you to be a greater risk.
  • Policy details—Coverage limits, deductibles, endorsements and exclusions may all impact the cost of general liability insurance.

How Much Coverage Do I Need?

Determining the right amount of general liability insurance depends on your business’s specific circumstances. Assess your potential risks, assets and industry standards. Smaller businesses may sometimes need less coverage than larger ones, while high-risk industries may require higher limits. Consulting with a qualified insurance professional can help you understand your needs and acquire an appropriate policy.

We’re Here to Help

Having served businesses, families and individuals in the Houston area since 1998, Hernandez Insurance Services has the knowledge and experience to help companies acquire the right solutions, including general liability insurance for LLC policies and general liability insurance small business coverage. Contact us today to get started.

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