All small business owners are legally responsible if their employees get hurt or if property is damaged because of something you did. Small business owner, independent contractors can be sued and held liable for customer injuries, customer property damage or employee injuries.
General liability insurance isn’t required but many states mandate it for certain industries like construction. It is likely required by your landlord, Mortgage Company and even clients. Landlords typically require a certificate of insurance as proof of general liability insurance coverage. This document verifies your business can handle any personal injury or property damage lawsuits.
Small businesses also benefit from commercial general liability insurance also called a CGL policy. General liability insurance covers non-professional negligent acts and provides coverage for common liability claims from third parties (people outside your business). It protects your business from financial loss should you be liable for property damage or personal and advertising injury caused by your services, business operations or your employees.
Your CGL policy should pay for hiring a lawyer to court-ordered judgments and settlements. This insurance can keep your company financially stable if you’re sued by a customer or competitor
Commercial property insurance covers your business property. When bundled with a commercial general liability policy, it’s known as a business owner’s policy (BOP) and many times the cost is lower.
