How Much General Liability Coverage Does Your Business Need?
When attempting to find general liability insurance, knowing how much coverage you need is essential. There are layers of coverage and specific details to watch out for.
In this article, we’ll talk more about general liability insurance and guide you through deciding how much coverage you actually need for your business.
First, What Is General Liability?
General liability insurance protects businesses against claims or lawsuits filed by third parties for bodily injury or damages caused by the business’s operations, products, or services.
Imagine someone slipping and falling at your store or accusing your business of using their copyrighted material in an ad campaign. Unfortunately, these are situations where general liability insurance can step in and provide the necessary financial protection.
How to Determine How Much Coverage Is Enough?
To determine the right amount of coverage for your business, it’s essential to know its nook and cranny while asking yourself these questions:
- How large is my business?
- Who are my customers?
- What type of business do I have?
- Where is my business located?
- How many employees do I have?
The more exposure risks your business faces, the more coverage you will need. And as it evolves and grows, your insurance needs might change too. Keep an eye on your operations and identify areas potentially resulting in higher liability.
Once you’ve got a handle on the level of risk your business faces, you’ll have a better sense of which coverages to include in your overall insurance package.
Commercial liability insurance, for instance, covers a lot of ground, but it doesn’t protect from every possible claim. Likewise, if your general liability insurance falls short, you should consider add-on coverages called endorsements to cover fire damage, liquor liability, employment practices, and more.
How Much Coverage Do You Need?
While there isn’t a one-size-fits-all answer, a common starting point for general liability coverage is $1 million per occurrence and $2 million in aggregate.
But if your business has higher risks or valuable assets, you will need higher coverage limits, such as $2 million per occurrence and $4 million in the aggregate, or even more.
When getting a policy, it’s imperative to consider whether you can afford the deductible. Moreover, if you find yourself in a tight spot and need help to come up with the money for the deductible, you won’t be able to activate your insurance to cover any liability claims.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.