what is general liability insurance

What Is General Liability Insurance? Everything You Need to Know

VWB Blog 2 years ago 41

Around 50% of all small businesses operate out of homes instead of offices, warehouses, or other commercial spaces.

Running a small business out of your house can help you save money on costs and provides more convenience. But, it still requires purchasing the necessary types of insurance, including general liability insurance.

What is general liability insurance, you might wonder?

So, whether you operate your new business out of your house or rental space, you need general liability insurance. Here is a guide to help you discover what it is and why you need it.

What It Covers

General liability is a form of business insurance that covers several crucial things. Here are the primary things it covers:

Accidents on Your Property

If customers or delivery people encounter accidents on your property and experience injuries, they can file claims against your general liability insurance.

Product Defects

General liability insurance also covers damages that arise from product defects. If you sell a product or service that injuries someone, you have coverage for these damages.

Property Damage

Additionally, if you work at a customer’s house and damage something they own, your general liability insurance covers the damages.

Why You Need It

As you can see, general liability coverage provides vital insurance coverage for your business. Most businesses need this coverage, but you can ask your agent if you should buy it. You can also check out

Here are several reasons you need it:

Financial Protection

If you buy insurance, it protects you financially. The same is true with general liability insurance.

For example, if someone breaks their leg at your business, you’d have to pay their medical bills. However, your insurance coverage compensates the injured person if you have the right type.

Therefore, general liability insurance provides financial protection for you and your business.

Legal Protection

Secondly, a general liability insurance policy protects you legally. For example, if someone gets injured on your property, they can sue you. You’ll have legal protection against lawsuits with this insurance policy.

Things It Doesn’t Cover

So, is general liability insurance the only insurance you need? The answer is no. General liability insurance covers many things, but it doesn’t cover everything.

For example, it won’t cover injuries that your employees incur while working. Therefore, you’ll need a different insurance plan for this purpose.

It also won’t cover accidents that happen while driving. You need car insurance for this purpose.

Your business might need several other insurance types, but you should never operate without a sufficient general liability insurance plan.

What Is General Liability Insurance? Now You Know

After reading this guide, you might know the answer to “what is general liability insurance?” Once you learn what it is, you’ll understand why you need it and how to buy it.

You can contact an insurance company for a quote if you’re ready to purchase insurance coverage.

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