As a small business owner, you seek to serve your community in practical ways. However, the closer you get to the community, the greater your risk of causing them harm. If they blame you for such occurrences, you could stand to lose a lot of money, business and productivity. However, if you have general liability insurance, you might be able to better weather the storm. This is especially true in the cases of small business owners. Why is this the case?

General liability insurance is coverage that applies to your duty towards your clients. However, it will protect your business in an indirect, but very beneficial way.

General Liability Insurance

Coverage for general liabilities comes into play when something happens to those with whom you do business. It will help you when your actions cause the parties damage for which they blame you.

For example, let’s say a client slips and falls on a puddle of water on the floor of your store. They sustain personal injuries and significant medical costs. You clearly did not intend for the accident to happen. However, the affected client might still blame you for the damage. They might request your assistance in paying for the damage. They might even sue you for the damage.

In these cases, your general liability insurance can come in handy. Your policy can cover things like the medical bills, or property damage costs, your clients sustain. Even so, it will still provide significant help to the business.

Coverage’s Importance for Small Business Owners

The purpose of general liability insurance is to protect your business in case of legal action against you. Though it is commercial coverage, it will serve a personal purpose as well.

Small business owners usually become known as the faces of their business. Therefore, they can sustain many personal blows following general liability suits. Given that small businesses usually have smaller assets to respond to claims. Thus, the risk of significant financial losses might increase. The personal security of the business owner, as a result, might come under fire. Consider a general liability policy protection for more than just yourself.

Ask About D&O Insurance

Once you have general liability insurance, you might expand it with directors & officers (D&O) insurance.

When a liability lawsuit threatens your business, the plaintiff might name you personally at-fault for the suit. In this vein, because you own the business, your personal assets might come under threat of losses. Talk to your agent about where your general liability coverage will protect you personally. Then, see if you need to expand it with this overage. You will usually need multiple types of business liability insurance to make a full business.