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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