In today's fast-paced business environment, you may feel that finding the right insurance for your business is too confusing or overwhelming. For business owners around the country, getting familiar with commercial general liability (CGL) insurance may be a great place to start. This type of insurance can help cover common business risks such as third-party bodily injury, property damage, and legal costs.
If you run a small business, you may understand that certain operational liabilities can leave your company vulnerable. Unlike large corporations that may be able to navigate significant financial issues better, small businesses can be seriously jeopardized by a single lawsuit or injury. That’s why CGL insurance is not just a good idea but may be a crucial way for your business to avoid financial strain after a covered accident.
What does CGL insurance cover?
Having a CGL insurance policy may help cover certain claims that affect your business, which may include:
- Property damage: If your business causes damage to a third-party’s property, this insurance may pay for those repairs.
- Personal and advertising injury: If your business is hit with claims of libel or slander, this insurance may help cover those legal costs.
- Bodily injury: If a third party is injured on your business premises, CGL insurance can help pay for medical and legal expenses.
Costly legal claims and small businesses
So, now that we know what CGL insurance may cover, let’s discuss how small businesses may benefit from this type of coverage.
If you’re a small business owner, you may be worried about potentially dealing with a lawsuit. Let’s say a customer may have slipped and fallen inside your store, or a contractor might’ve damaged your client’s property during a job, and now your business is facing a lawsuit. Even if the incident seems minor, legal fees and settlement costs may quickly escalate into the tens or hundreds of thousands of dollars. For a small business, these costs may be devastating.
If you have CGL insurance, it may help cover legal defense costs, court fees, and settlements or judgments up to your policy limits. That’s why having this coverage may be beneficial for your business in avoiding financial issues after a lawsuit.
Credibility and contract requirements
Certain clients, landlords, and vendors may want proof of liability insurance before doing business with you. If you run a construction business, it’s typically common to work with clients that may require you to have CGL insurance.
Having a CGL policy in place can help show that your company is responsible, prepared, and trustworthy, as well as helping clients mitigate their own financial risks when working with you. This can also be a deciding factor for potential clients when choosing between your business and an uninsured competitor. Additionally, if your business is leasing commercial space or bidding on a contract, you may be required to show a certificate of insurance. Without CGL coverage, your business could miss out on key opportunities for growth, partnership, and revenue.
Getting CGL insurance with IIA
At Infinity Insurance Agency, Inc. (IIA), we understand the unique challenges that small businesses can face. Our experienced, Spanish-bilingual team is committed to helping you find affordable coverage that’s tailored to your business and industry. We work with 20+ carriers that can help you locate the right business insurance policy for your budget.
If you have questions about business insurance or need to purchase a CGL policy today, contact IIA at 1-855-478-3705. You can also head to our website to get a free personalized quote online.