Which of the following would be covered under a business liability insurance policy
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There are plenty of calamities that can put a serious dent in your bottom line. For instance, your employee might spill a can of white paint on merchandise. Or a customer might get hurt after tripping on a rug in your store. Or you could be sued for reputational harm due to something you or your employee said. General liability insurance covers a small business from these types of problems (and more). It’s an essential coverage type for small business owners. What Is General Liability Insurance?General liability insurance protects a business against claims of bodily injury and property damage from customers and clients. These types of claims may result from your company’s products, services or operations. Without general liability insurance, you could end up paying out of your business’s income and, in a worst-case scenario, even go bankrupt. General liability insurance is sometimes called “business liability insurance” or “commercial general liability insurance.” What insurance do I need for my small business?General liability insurance is a core coverage type for any small business insurance policy, but it’s only part of the solution for the multitude of problems that could financially impact your company. You’ll want to add more coverage types to protect your company against other types of risks, such as fire, theft, vandalism and lost income. A good way to get started is with a business owners policy (BOP). It bundles general liability insurance along with commercial property insurance and business interruption insurance (also known as business income insurance). You can also add other types of business insurance to meet your company’s needs. For example, if you use a vehicle for work purposes, you can add commercial auto insurance. Business Loan Offers Loan amounts $2,000 to $250,000 Loan amounts $5,000 to $250,000 Loan amounts $5,000 to $500,000 Time in business 6 months What Does General Liability Insurance Cover?General liability insurance protects a business from a variety of possible claims, including bodily injury, property damage, copyright infringement, reputational harm and advertising injury.
These types of liability claims are prevalent, so you’ll want to keep your business protected with the right insurance. For example, the average cost of a slip and fall claim is $20,000. And if you face a reputational harm lawsuit, you could be facing $50,000 in costs, according to The Hartford. A good way to extend your business liability insurance is by purchasing a commercial umbrella insurance policy. This gives you an extra layer of protection from expensive lawsuits. What Does General Liability Insurance Not Cover?General liability insurance covers a lot for a business but it doesn’t cover everything. For these kinds of liability claims, you’ll need different types of business insurance, including:
Insurance won’t cover intentional acts, such as a computer you throw out the window. And general liability insurance won’t help if there are deliberate, illegal acts or wrongdoings by you or your employees. Who Needs General Liability Insurance?Here are situations where you’d benefit from business liability insurance coverage:
What types of businesses benefit from general liability insurance?The types of businesses that typically buy general liability insurance include:
Is general liability insurance required by law?Business liability insurance isn’t required by law, but if you fail to buy coverage, you’re leaving your business vulnerable to a wide variety of costs that could potentially bankrupt your business. How Much General Liability Insurance Coverage Do I Need?Most small businesses choose standard coverage amounts of $1 million per occurrence and a $2 million aggregate policy limit for their general liability insurance coverage, according to Insureon. This type of policy will pay up to $1 million to cover a single general liability insurance claim, with a $2 million limit for all claims during the policy period. The policy period is typically one year. How Much Does General Liability Insurance Cost?General liability insurance costs an average of $42 a month, according to Insureon. It might be less than that—17% of Insureon’s small business customers pay less than $25 per month for their general liability policies. The cost of general liability insurance coverage varies based on the size of the business, your industry, your location and the amount of coverage you need. You can manage general liability insurance costs by choosing the insurance limits that best meets your needs. A business owners policy is a convenient and cost-effective way to combine general liability insurance and business property insurance. But you also can buy general liability insurance all on its own. How much you pay for general liability insurance depends on key factors such as:
The Risks of Not Having General Liability InsuranceFacing judgments, legal settlements and lawyer fees without the aid of general liability insurance can be very expensive and even bankrupt a business. Legal counsel can cost more than $100 an hour. Court costs may exceed $75,000 if the claim goes to court, and you may need to spend several thousand dollars even if a lawsuit is dropped, according to The Hartford. Not having general liability insurance puts your business at financial risk. And you may lose clients because they won’t do business with you if you don’t have general liability insurance. To prove that you have insurance coverage, you’ll need a certificate of insurance. This official document lists all the coverage types and limits on an insurance policy. How to Get the Best General Liability InsuranceHere’s a guide to getting the best general liability insurance. Gather your information and documentsBefore you start shopping for a general liability insurance policy, you’ll want to make sure you have all of the necessary information handy. Here’s what you’ll need:
Consider a business owners policyA general liability insurance policy is foundational coverage for your small business, but it won’t cover problems like theft, vandalism, fire, severe weather and lost income. If you want coverage for these types of issues, you’re going to need to buy additional coverage. A good way to do this is by purchasing BOP, which bundles general liability insurance with commercial property insurance and business interruption insurance. It’s typically cheaper to buy a BOP than to buy all three policies as standalone policies. Compare general liability insurance quotesWhether you buy general liability insurance as a standalone policy or as part of a BOP, you’ll want to compare business insurance quotes from several insurance companies. That’s because insurers don’t price their policies the same. You can get free business insurance quotes online or by speaking with an independent insurance agent. Business Insurance Made SimpleCompare Free Quotes From Top Insurers at SimplyBusiness. Get a Policy in Under 10 Minutes. What is covered by liability?What is liability coverage? Liability coverage pays for property damage and/or injuries to another person caused by an accident in which you're at fault. This coverage is required by most states to legally drive your vehicle.
What is covered under a commercial general liability policy?A Commercial General Liability (CGL) policy protects your business from financial loss should you be liable for property damage or personal and advertising injury caused by your services, business operations or your employees. It covers non-professional negligent acts.
Which of the following is not considered an insured contract under the commercial general liability policy quizlet?Which of the following is NOT considered an insured contract under the Commercial General Liability Policy? Fiduciary liability insurance.
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