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3 Reasons You Need General Liability Insurance

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Owning your own small business can be very rewarding, both personally and financially, but it also involves risks. When you work for someone else's company, chances are they have liability insurance, which means you and your colleagues and clients are protected in the case of injury or damage in the workplace. When you own your own business, it is your responsibility to sign up for a general liability insurance policy. Here are three reasons why:

General Liability Insurance Offers Coverage if a Client's Property Is Damaged

Many businesses involve working directly with a client's personal property. If that property is damaged while under your control, your general liability insurance should kick in to pay for the damage.

For example, if you are a computer repair company and a client's laptop is damaged by a virus or power surge while you have it, your general liability insurance will likely pay to replace it. The same goes for businesses like home renovation companies, auto repair shops, or dry cleaning companies that frequently work with their clients' belongings.

Many Contracts Require General Liability Insurance

It's important to read all of the fine print before signing a new contract with a client or vendor. Many standard contracts require that the business owner have general liability insurance as a precaution.

For example, if you own a wedding venue, many of your brides and grooms as well as vendors like caterers will want to know that you are insured before doing business with you. Having liability insurance set up and having the documentation easily accessible demonstrates your professionalism.

General Liability Insurance Protects Anyone Who Is Injured at Your Place of Business

No matter how safe you are, it is always possible that a client, contractor, or employee can get injured at your place of business. They may slip and fall right after you clean the floor, hurt their back when lifting a heavy box, or be injured by an electrical spark when changing out a fuse.

It's better to be safe than sorry, and general liability allows you to do just that. It usually covers medical bills and also reduces the chances that you will be sued if someone is injured at your place of business.

The first step to take is meeting with an insurance agent. They can go over the specifics of your business and help find a liability insurance policy that keeps you protected.


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