Running a small business comes with a lot of risks. You’re probably familiar with many of the most common ones if you’re an insurance agent running your own agency. You’re a small business owner yourself, after all.
Your clients are no different. An accident, natural disaster, or break-in, among many other things, can bring financial losses to your clients’ businesses. Without the right types and amounts of insurance in place, the results can be devastating.
As an independent insurance agent, your clients rely on your expertise to make sure their business is covered for the most common business losses. Often, general liability insurance is a key ingredient in the mix of coverage your clients need. If you’re not familiar with general liability insurance and which types of businesses need it, you could be missing out on a large revenue opportunity. More importantly, your clients could be left open to liability where they should be protected.
What is general liability insurance?
Sometimes called commercial general liability insurance or business liability insurance, general liability insurance covers some of the most common risks associated with running a business. Businesses large and small can take advantage of general liability policies, and, if you’re advising small business clients on insurance, it’s a policy your clients may not even know they need.
A general liability policy can cover a small business owner for claims of:
- Bodily injury caused by the business like customer slips or falls
- Property damage caused by an employee like a kitchen fire or broken window
- Personal injury, including libel or slander
As an independent agent, if your clients are asking you about general liability insurance, they’re probably wondering if they need this particular coverage for their business. And if they’re not asking, they might not even know they need it! Most businesses do need at least some amount of general liability insurance. Having a policy helps set business owners up for success and protects the business owner, property, and employees in the event of an accident.
Why do business owners need general liability insurance?
When it comes to running a business, liability claims are common and costly. Without general liability insurance, a business is forced to pay any costs out of pocket, including legal costs and any damages the business is found responsible for. While a larger corporation may have the funds to pay multiple general liability claims (although we wouldn’t recommend going without insurance), just one accident without general liability insurance could mean the end for small businesses.
If your clients work in the business-to-business space, general liability insurance becomes even more important. Many companies require all businesses they work with to provide proof of general liability coverage. Without general liability, your clients’ businesses might not even be able to operate.
What types of businesses need general liability insurance?
If you run a small business, you need general liability insurance. This is especially true for businesses that rent or own property as well as those that work directly with customers. Any small business is susceptible to a lawsuit in the event of property damage or injury and therefore needs general liability insurance to offset legal costs, medical payments, and other expenses that arise from claims.
While no industry is exempt from the need for general liability insurance, certain companies may need additional types of business insurance to ensure they are protected. This is especially true for small businesses.
For example, general liability insurance won’t cover business-related auto accidents or employee injuries. Small business owners worried about these risks need commercial auto insurance and workers’ compensation insurance in addition to a general liability policy.
Keep your business protected with general liability insurance
Even the most safety-minded business owners face risks in running a business every day. Nobody wants to be stuck paying pocket for repairs, medical bills, legal bills, and damages to injured parties.
With general liability insurance, small business owners can avoid being out of pocket for these types of claims, and keep their business running smoothly. If your clients are looking for general liability insurance, take a look at how Pie Insurance can help.