As a business owner, you have what feels like a million decisions to make a day, insurance is likely one of the last on that long list. We understand, being business owners ourselves, when doing research for your business like you are right now, you want to get to what's important and hear why it's important to you as quick as possible. We feel that the best starting place for business owners regarding business insurance coverage is general liability. We will cover what general liability insurance is and why it's important to you!
What is General Liability Insurance?
General Liability Insurance is the most basic of the types of business insurance, and is often the foundation of a much broarder insurance plan. It’s often the first insurance policy that a business needs when building out their insurance plan.
Nearly every business can benefit from having General Liability Insurance (often referred to as just “G.L.” insurance) It’s designed to cover a number of common incidents:
§ Lawsuits over third-party bodily injury and property damage.
§ Immediate medical expenses for third parties injured on your business premises.
§ Personal injury lawsuits, including slander and libel
§ Advertising injury lawsuits, including copyright infringement
§ Product liability lawsuits.
How does it work?
Third parties are anyone besides you, your employees, and your insurance company. Examples include customers, a passersby, etc. When someone is injured or has their property damaged on your property, they may ask you to pay for damages. The request for damages may be in the form of a lawsuit. Your general liability policy helps to cover the cost.
More specifically, General Liability policies can cover things such as attorneys’ fees, court costs, judgments (if you’re found liable), immediate medical expenses and settlements. This part of your Ohio business insurance policy can greatly protect you in times of need.
Claim Examples of Bodily Injury Coverage:
Let’s say for example a customer visits your office and trips over some equipment you have in the path they are walking. The customer falls and breaks his ankle and has to stay home from work for a week because of the injury.
Now, here’s where it gets interesting. The customer decides to sue you, thinking that your office should be a safer space for customers. Not only is he asking for you to pay the already expensive hospital bills, but now he wants you to pay for damages as a result of a contract that he would have received had he not become injured.
Your businesses general liability policy is able to cover the cost of hiring an attorney to help settle the case. You don’t have to sell your business to pay for the client’s bills, and you can keep on doing business, with a lesson learned and a business still in tact.
Claim Examples of Property Damage Coverage:
Now imagine this customer has accidentally dropped his iPad as he trips in your office, causing it to break. Included in the claim is the cost of a new iPad for your customer. General Liability policies can cover this as well.
Claim Examples for Medical Expense
The customer has fallen and is injured. Being responsible, you call an ambulance immediately after the fall. The customer is rushed to the hospital and taken care of quickly, missing only a few hours of work.
The General Liability policy can cover the cost of the ambulance ride as well as the other immediate medical expense costs. Actually, in doing so, the incident ends up being less costly because the client doesn’t end up suing you and is grateful for the quick and reasonable assistance you provided.
This is an example of how your General Liability policy allows you to take care of potential incidents quickly, before they turn into bigger problems, such as a suit or a potential catastrophe. Also, it saves the insurance provider a lot of money over the long run.
Claim Examples of Personal Injury and Advertising Injury Coverage
Let’s say that a satisfied customer leaves a glowing review on your website. It’s very positive about you but says some nasty things about one of your competitors, some of which might be a tad exaggerated. When your competitor sees it, she’s furious, and demands you take down the review. You forget about it for a few days and then wake up one day to find you’re being sued by your competitor for libel.
Because General Liability Insurance as part of your Ohio business insurance can cover personal injury claims, your policy helps you out with the legal costs as your attorney finalizes a settlement or crafts a defense.
The same is true for cases of advertising injury. If you’re sued for using a copyrighted image or song in your promotional material, your GL insurance may come through with legal funding.
Coverage for Product Liability
If you manufacturers products or sell products branded with your name, you have exposure to products liability. You can be sued if your product causes harm or property damage to a third party. Luckily, general liability insurance may cover these types of claims as well.
For example, say you have connections with an electronic chip manufacturer and offer to sell these components as part of your business. A few clients purchase these parts from you. But then they malfunction and cause your customer’s network to go down. Before you know it, the customer has sued for products liability. Your General Liability Insurance kicks in to cover your legal costs.
Why do I need General Liability?
1. General Liability can keep you in business! It covers the most common types of incidents that many businesses face and will help you stay in business when an accident happens. It helps protect you if a customer is injured at your place of business. It can cover damage or injuries caused by your employees at a customer’s location. It’s like armor working for you, 24 hours a day. Ohio business insurance is critical to keeping your Ohio business safe!
2. The average trip to the emergency room is over $1,200. In some parts, an ambulance ride alone can cost over $2,000. For an average injury and ambulance ride you could be on the hook for over $3,000… and that’s just for a minor incident!
3. Peace of mind. Having general liability insurance helps you sleep at night knowing the most you’ll have to pay for an unexpected incident is your deductible. you can rest assured knowing the most you’ll ever have to pay for unexpected events is your deductible.
Thank you for your interest in Cobos Insurance
for your business insurance needs, if you have questions or would like to speak with one of our insurance professionals call us at 440.233.6199
or contact us