A business faces lot of risks everyday and the only way to protect the business is to carry an appropriate business liability insurance policy. General Liability insurance covers claims of injuries to the body or property damage. This type of insurance is also called as the Commercial General Liability (CGL) insurance.
There are many types of small business that directly deal with people, such as, massage therapy centers, personal trainers, and daycare etc. General liability insurance for small business can be purchased in the standard business policy package and also it can be obtained separately as well. It is very important for the company to be protected from legalities of physical injury claims, advertising claims, and even property damage. The Commercial General Liability (CGL) insurance policy pays the compensation directly to the claims made by the third parties and not to the insured. And for the insured it pays only the legal costs arising out of the claims. More importantly, while purchasing the general liability insurance for small business one has to consider the costs associated with it.
CGL policies for small businesses will cover claims in four basic categories of business liability:
- Bodily Injury
- Property Damage
- Personal Injury
- Advertising Injury
Commercial General Liability policies provides coverage for the cost to defend or settle claims if some fraudulent claims are raised against the business.
Some insurance companies offer policies which covers only the prescribed expenses and the other miscellaneous expenses should be paid by the insured itself. While buying an insurance policy the cost of premium premiums will depend on the factors such as the number of employees, clients, annual sales, etc. To get the best general liability insurance for small business rates, it is important to compare the premium rates offered by various service providers and choose the most suitable one.