General Liability and Workers' Comp Insurance for Small Businesses

Barja Asuransi | In the early days of starting your small business, choosing and maintaining your insurance policy can be overwhelming and confusing. Which policies do you need? How much coverage should you have? What type of policy works best? What kind of premiums are you looking at? To ensure that your business stays protected and grows with confidence, take the time to learn about general liability and workers' comp insurance for small business.

 General Liability and Workers' Comp Insurance for Small Businesses

What is General Liability Insurance?

General liability insurance provides protection against claims of bodily injury or property damage that occur on your premises. General liability insurance protects you from third-party claims for bodily injury, such as when someone slips and falls at your business. It also covers damage to property that occurs on your premises by you or by an employee acting within their scope of employment. 

General liability is an important piece of coverage if there are hazards on your site, such as machinery, chemicals, toxic waste dumps or flammable materials. General liability policies also typically cover product liability. If you're selling a product with a potential defect to customers who use it incorrectly (such as a food processor in which nuts get caught), general liability may help protect you from lawsuits related to those injuries.

Read Also :  3 Things You Need to Know About Workers Compensation Insurance for Small Businesses in California

What Kinds of Claims Does General Liability Cover?

General liability (also known as general comp) insurance is designed to cover a broad range of claims related to harm that your business may cause to someone. General liability policies typically provide coverage in three main areas: 

(1) bodily injury, which refers to injuries caused by a company's products or services; 

(2) property damage, which includes any physical harm done to another person's property; and 

(3) personal injury, which refers to emotional or mental trauma sustained by an individual due to a company's negligence. 

General liability insurance does not typically include product recall costs—that type of coverage will be offered under your products/completed operations insurance policy.

What Is Workers’ Compensation Insurance?

When you have employees who work on your business premises, it’s not just common sense to have general liability insurance; it’s also a legal requirement. However, since not all employers offer their workers health insurance or benefits, a small business owner may not even realize that there is such a thing as workers’ compensation insurance (also referred to as WC coverage). 

Here's what you need to know about general liability and workers' comp insurance for small businesses. What Is General Liability Insurance? What Is Workers’ Compensation Insurance? How Are They Different?

Who Needs Commercial Insurance Coverage?

If you’re operating a small business, commercial insurance is an absolute must. The two most important types of coverage to consider are general liability and workers’ compensation. General liability insurance covers injuries that occur on your property or within your business. While state laws vary, some examples of general liability claims may include slip-and-fall accidents, dog bites or dog attacks, storm damage to your property, vandalism or car break-ins. 

Worker’s compensation covers employees who are injured on their job; it also covers any business owners who are injured while performing work duties in their place of business. To find out more about general liability and workers’ comp coverage for small businesses, keep reading...

How do I Find a Good Agent?

Selecting a good agent can seem overwhelming, but it doesn't have to be. We've put together some information on how to find a good agent that might help you get started. There are plenty of agents out there, so take your time finding someone you feel comfortable with; don't rush! If you're not sure where to start, ask friends or family members if they know any insurance agents who are reputable. 

You could also check in with your local Chamber of Commerce or call your state's Department of Insurance for recommendations. It's important to remember that insurance is regulated at both the state and federal level, so make sure any agent you choose is licensed by either one (or both). 

A license isn't a guarantee that an agent will do right by you or your business, but it's certainly better than choosing an unlicensed one! If you're looking for general liability coverage specifically, we recommend checking out Allstate Commercial - they provide insurance products tailored specifically to small businesses like yours.

What Do I Need to Know About Auto Coverage?

Larger companies are required to have worker's compensation insurance by state law, but many small businesses don't carry it because they operate with fewer than five employees. However, not carrying workers' comp coverage can cost you in court if an employee is injured on the job. 

In fact, more than 20 states do not allow lawsuits against employers who are in compliance with worker's compensation laws; instead these claims must be filed through a government agency. Other countries will fine you if your business fails to comply with worker's compensation laws, so it is important to know what you need as far as general liability and workers' comp insurance for small business covers.

Determining your Premium Costs

As a small business owner, you’re probably aware that property insurance protects your personal assets in case of damage or theft. However, many people don’t realize that it also provides protection against lawsuits or bodily injury liability if someone gets hurt on your property. 

General liability insurance (aka GL) helps protect your business against expenses like court costs, settlements, and fines resulting from accidents that were caused by something in your workplace or facility. Although such events are rare, they can happen—and it's better to be safe than sorry. A typical general liability policy will help cover defense costs up to $1 million, as well as damages that exceed $300k.

Conclusion

Let's Summarize What We've Learned About General Liability and Workers' Comp Insurance for Small Businesses The world of small business insurance can be a bit daunting. There are many different options, each with their own pros and cons. 

But don't worry! By understanding what general liability insurance is, how it differs from other forms of business insurance, as well as what workers' comp covers (and doesn't cover), you'll be well on your way to making sure your small business is properly protected. 

And if you ever have any questions or concerns about your coverage, don't hesitate to call up your agent—they're there to help!