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Things you should know when shopping for General Liability Insurance

Things you should know when shopping for General Liability Insurance

Mar 21, 2023

Establishing a new business is an exciting venture, but it is not without inherent risks. Even if you have taken steps to protect your business, such as incorporating it or building a legal structure, you may have overlooked a vital element, namely insurance.

General liability insurance is one of the most important types of insurance for any business since it may protect the firm against a variety of claims, including those alleging bodily injury, property damage, and market reputation damages. Yet, because there are so many policies to choose from, it may be tough to make the best choice.

This article will explain everything you need to know about getting general liability insurance, including what it covers, how much coverage you need, and where to purchase it.

General Liability Insurance—What Is It?

The purchase of general liability insurance protects a company against claims made by customers and clients for personal harm and property damage. These kinds of claims might arise because of your organization’s products, services, or activities. 

If you do not have general liability insurance, you run the risk of having to pay for damages out of the profits of your company, and in the worst-case situation, you could even have to declare bankruptcy.

What General Liability Insurance Covers

To ensure that your organization is appropriately secured, it is essential to comprehend the scope of your insurance coverage. General liability insurance is meant to protect your business against a variety of claims, such as personal injury, property damage, copyright infringement, reputational loss, and advertising damages.

For example, if a customer is injured on your business premises, your general liability insurance will cover their medical bills. Similarly, if a consumer sues your company for physical injury, your insurance coverage will cover the accompanying legal fees.

Property damage is another instance in which general liability insurance might be required. You and your business might be held liable if someone’s property is harmed due to the neglect or fault of your company. But, if you have Florida general liability insurance, your coverage will cover the losses and protect you from financial hardship.

In addition to protecting against personal harm and property damage, general liability insurance may shield your organization from copyright infringement charges. This can occur if you utilize another person’s work without permission in advertising or marketing materials for your business.

Lastly, general liability insurance can cover reputational damage as a potential risk. For example, if you make a defamatory comment against another firm during an interview with a news source. Your insurance coverage can shield you from any legal action that may ensue.

What is NOT Covered by General Liability Insurance

General liability insurance offers substantial protection for your organization but does not cover everything. It will not cover automobile accidents linked to your business, employee injuries, and illnesses, damage to your business property, mistakes in professional services, claims above your policy’s limit, or deliberate criminal acts perpetrated by you or your workers.

For various forms of liability claims, the following types of business insurance are required:

  • Employee sickness and injuries: Workers’ compensation insurance is required to cover employee injuries.
  • Automobile accidents: Commercial auto insurance will protect you financially in the event of an accident if you own a vehicle utilized for business reasons. A hired or non-owned auto insurance coverage will protect you if you use a personal or leased vehicle for business.
  • Professional errors: Errors and omissions insurance (E&O), often known as professional liability insurance, covers you if you make mistakes while carrying out your responsibilities.
  • Theft and destruction of your company’s property: Your company equipment and property are not covered by general liability insurance against theft or damage. You will need a business property insurance policy to cover such occurrences.
  • Non-accidental acts of destruction: Insurance does not cover intentional acts, such as tossing a computer out of a window. General liability insurance will not aid you or your staff if you or they perform purposeful criminal acts or wrongdoing.

Does Florida Law require General Liability Insurance?

No state legislation in Florida requires companies to purchase general liability insurance. However, some professions and businesses may have special insurance needs, such as healthcare practitioners and contractors who are required to get liability insurance as part of their licensing requirements.

In addition, although general liability insurance is not required by law in Florida, many company owners opt to carry it to protect their companies from financial losses caused by unforeseen accidents, injuries, or damages. Consult with an insurance expert, such as Del Toro Insurance, to establish the types and amounts of coverage that are appropriate for your business.

Who Should Get General Liability Insurance

Consider purchasing general liability insurance if your firm functions in the public sphere, interact with clients or customers, and has the potential to cause loss or damage to persons or property. This comprises small enterprises, independent contractors, freelancers, and self-employed people that sell items or provide services.

The following firms may consider purchasing general liability insurance:

  • Restaurants and cafés
  • Retail outlets and stores
  • General contractors and construction staff
  • Services for landscaping and lawn maintenance
  • Cleaning and janitorial services
  • Advisors and business coaches
  • And more

How Much Coverage to Get for Your Small Business

Determining the appropriate amount of general liability insurance coverage for your small business can be a complex process that depends on several variables, including the size and type of your business, the nature of the services you provide, and the perceived level of risk associated with your industry. 

The following recommendations can assist you in determining the appropriate level of coverage for your business:

  • Evaluate your business’s size: Generally, the larger your company, the more coverage you will require. A small firm with fewer employees and a smaller income may need less coverage than a more significant business.
  • Assess your industry’s risk: Several businesses are intrinsically more hazardous than others. Due to the heightened risk of accidents and injuries, construction, and healthcare companies, for instance, may require additional coverage.
  • Understand your contract obligations: If you engage with customers or vendors, they may need a certain amount of liability insurance coverage. Check your contracts and agreements to verify that you have the necessary level of insurance coverage.
  • Evaluate your assets: The worth of your business’s assets might also play a role in evaluating how much coverage you require. If your company possesses substantial property, equipment, or inventory, you may need additional insurance to safeguard against potential losses.
  • Consult with an insurance expert: A certified insurance agent can give invaluable assistance in calculating the proper amount of coverage for your business, depending on its unique circumstances and risk factors.

Although there is not set in stone rule, small firms often choose a general liability policy with coverage amounts between $500,000 and $2,000,000. However, the actual amount of coverage you require may be larger or lower based on your particular circumstances. It is best to speak to an expert agent to help determine what YOU specifically need. 

The Average Cost of General Liability Insurance in Florida

According to Insureon, the monthly average cost of general liability insurance is $42. 17% of consumers pay less than $25 each month.

The cost of general liability insurance relies on several variables, such as the size of your business, your industry, your location, and the quantity of coverage you need. You can choose insurance limits that correspond to your requirements to control expenses.

A company owner’s policy that includes general liability insurance and commercial property insurance is a cost-effective choice. But you may also obtain general liability insurance as a standalone policy if you so want.

Where to Purchase a General Liability Insurance Policy

There are several choices for acquiring general liability insurance for a small business. Working with an independent insurance agent or broker is one alternative, as they may offer you rates from numerous insurance companies and assist you in selecting the best coverage for your needs. It is important to always shop around when deciding on what coverage to get for your company, this way you can ensure that you are comfortably protected at all times. 

Another alternative is working with a specialized insurance firm, such as Del Toro Insurance. At Del Toro Insurance, we are an independent insurance firm that offers businesses in Florida a variety of insurance products, including general liability insurance.

Dealing with a specialist agency such as Del Toro Insurance can be helpful since they understand the unique risks that firms in your sector face and can customize coverage to match your specific requirements. We may also assist you in navigating the insurance market and locating the finest coverage at the lowest cost.

Visit our website or call our office to talk with a professional insurance agent about purchasing a general liability insurance policy from Del Toro Insurance today and get the coverage you need to be protected in any unforeseen event!

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