Here's What Can Happen If You Do Not Have General Liability Insurance

Business owner standing in closed restaurant

Did you know that there are 30.2 million small businesses located in the United States?

As the owner of a small business, you most likely understand that there are many risks that your business could encounter. By finding ways to protect your business from unforeseen circumstances, you could help to ensure a successful future for your company.

Are you interested in learning about how general liability insurance could help to protect your company? We've created this quick guide to help you better understand what can happen if you don't have general liability insurance. Keep reading to learn more!

What Does General Liability Insurance Cover?

General liability insurance can help to guard against specific kinds of liability suits. Some of the claims that general liability insurance may cover include third party bodily injury, third party property damage, or advertising injury.

Additionally, general liability insurance may help to cover incidents such as:

  • Medical expenses for customer injuries your business may have caused
  • The cost of property damage claims made against your business
  • Advertising injury and reputational harm claims made against your business
  • Judgments, settlements, and court costs for covered claims

Not only could general liability insurance help to protect your company from unforeseen circumstances, but it may also be necessary for certain types of licenses. It is recommended to check with your state and local governments for general liability requirements based on the type of business you own.

What Doesn't General Liability Insurance Cover?

You should be aware that there are some circumstances and events that general liability insurance does not protect against.

In most circumstances, general liability insurance does not protect against:

  • Malicious acts completed on purpose
  • Illegal actions done on purpose
  • Personal employee injury claims
  • Intentional damage to your business property

There are other types of insurance options available that may protect your company against some of the above-listed situations.

What Happens If You Don't Get General Liability Insurance?

Most legal defense, settlements, court fees, or judgment costs can quickly add up and could be expensive.

If there ever is a situation where an individual files a claim against your small business, you may need to hire legal counsel. Even if the customers’ legal claim never ends up making it to court, you can easily spend hundreds of dollars in just the claim itself.

When you take the time to add up the costs that can come from a legal claim, you could spend several thousand dollars. Purchasing general liability insurance for your business could help to cover these costs, making it easier for your small business to survive a claim.

Finding the Best General Liability Insurance for Your Company

Without general liability insurance, it can easily become expensive to pay for liability claims out of pocket. Many small businesses will struggle to afford the cost to come from a single claim.

Are you interested in purchasing general liability insurance for your business? Contact us today to learn more about general liability insurance.

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