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Running a business comes with many daily risks. A customer might slip on a wet floor. A visiting client could trip over a loose rug in your office. If someone gets hurt or their property gets damaged, your business could face an expensive lawsuit.
Commercial General Liability (CGL) insurance protects your company from these costly claims. It is often called business liability insurance.
What Does General Liability Insurance Cover?
CGL insurance helps pay for financial losses if your business is responsible for certain types of harm.
- Bodily Injury: Pays for medical bills and legal fees if a customer or visitor gets hurt on your property.
- Property Damage: Covers the cost to repair or replace someone else’s property if your employee damages it while working.
- Personal and Advertising Injury: Protects against claims of copyright infringement, slander, or libel in your marketing materials.
What is Not Covered?
A standard general liability policy does not cover everything. You will need separate policies for other business risks.
- Employee Injuries: You need workers' compensation insurance to cover sick or injured workers.
- Professional Mistakes: Professional liability insurance covers errors or missed deadlines in your services.
- Vehicle Accidents: Commercial auto insurance is required for company-owned cars and trucks.
- Intentional Acts: Deliberate damage or illegal acts by your business are never covered.
How Much Does Small Business Insurance Cost?
- Industry Risk: Construction companies pay much more than digital consultants because the physical risks are higher.
- Business Size: More employees and higher annual revenue usually mean higher rates.
- Coverage Limits: Choosing a higher policy limit increases your yearly premium.
- Claims History: Businesses with a history of past insurance claims pay higher rates.
Do You Need a Policy?
Even if your state or city does not legally require general liability insurance, many landlords and clients demand it before signing a contract. Purchasing a policy protects your personal savings and keeps your business secure if an unexpected accident happens.
MATANGAZO YA AJIRA PORTAL
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