Is General Liability Insurance Enough to Protect Your Business?

As its name suggests, general liability insurance is a policy that covers most of the protection needs of a business. However, this doesn’t necessarily mean that it’s a catch-all for every single situation. In actuality, despite its importance, other coverages that exist for different circumstances. And having a deep understanding of your industry and company will allow you to determine whether or not you need to secure additional policies.

What is general liability insurance?        

In a nutshell, general liability insurance covers most of the fundamental risks that often affect businesses of every kind, regardless of trade or industry. It serves to protect the business in the event of accidents that might occur to third-party entities during your company’s business operations. From property damage and physical harm to other issues such as copyright infringement, it serves to cover the business financially whether or not the incident was caused unintentionally.

What are the limits of the policy?

It’s vital to understand that general liability insurance exists only to protect the business from any potential lawsuits. The coverage doesn’t extend to claims made by the employees of the business nor does it financially protect the assets of the company. For example, your worker performs the IT-related services at a customer’s home. If he or she damages anything within your client’s property, it will be covered by general liability insurance.

Additional insurance policies that you may need

Depending on the industry, your company may require additional insurance coverage to ensure that it remains financially protected from any potential problems or issues that may arise. And listed below are just a few policies that the business might need.

  • Errors & omissions. Also known as professional liability, errors & omissions generally exist to cover a business against claims of negligence as well as civil lawsuits. It’s different from general liability in a way that it is designed to protect the company and its workers from any mistakes that they may or may not have made.
  • Commercial auto. If the business utilizes vehicles for their daily operations, commercial auto insurance is a policy that you’ll need to have as it protects personal injury, property damage and collision coverage that may be caused by one of your vehicles.
  • Medical malpractice. As its name suggests, this insurance policy covers doctors and other medical staff from any claims made by patients.
  • Worker’s compensation. This insurance policy covers both the company as well as workers in the event that an accident leads to an employee being unable to work due to injury within the office or site of operations.

While general liability insurance can cover a lot of potential issues and problems that a business might face, it may not necessarily be enough to protect a company in its entirety. Depending on the industry that you are in, you may need to secure additional policies to make sure that the business is financially supported in the event that it faces any potential problems along the way.


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