General Liability Coverage for Commercial Offices
When you're starting a small business, getting sued is likely the last thing on your mind. After all, you plan to run an airtight business, right?
The chances that you'll find yourself facing a lawsuit aren't nearly as low as you might think. An estimated 43% of small businesses are threatened with or engaged in litigation each year. For many, lawsuits can cause serious financial setbacks that can cause businesses to be financially impacted regardless of their performance.
This is where general liability insurance can come into play. Helping to protect your business may require having insurance for your office. Read on to learn about general liability coverage for commercial offices.
What Is General Liability Insurance?
Businesses of all sizes are exposed in a variety of ways to legal issues with third parties. These are called liabilities, meaning that you could be found liable for causing harm to another person or business. General liability insurance is designed to provide financial protection in the event that your office-based business faces a lawsuit such as the ones listed below.
Third-Party Bodily Injury Coverage
A client comes to your office and slips on an unmarked wet floor, breaks a bone, and hits their head on the ground, sustaining a mild head injury. Now, they're suing your business because you neglected to provide reasonable warning of the risk. This is a bodily injury, which you can receive coverage for with general liability insurance.
Keep in mind that general liability insurance does not cover damages related to employee injuries. Most businesses, including small businesses, should consider Workers’ Compensation coverage to help protect those employed by the business.
Third-Party Property Damage Coverage
Imagine another client visiting your office damaged their belongings due to a coffee machine spill. They might want compensation for the cost of repairs or replacement. Third-party property damage coverage is included in general liability insurance.
General liability insurance does not cover company-related expenses. You may want to obtain property insurance to help cover the cost of damaged company property.
Reputational Harm and Advertising Injury Coverage
Reputational harm, slander, and libel suits can crop up more often than you might think. For example, imagine your business makes a negative statement about a competitor who loses business as a result. That competitor may argue that the statement was unjustified, taking you to court for the cost of their lost income and reputational harm.
Advertising injuries can overlap with reputational harm, although they also include additional damages such as:
- Copyright infringement
- Violation of privacy
- Marketing idea theft
For example, if you use a copyrighted logo in your business advertising, the copyright holder can sue you for advertising injury. General liability insurance can cover many of these types of damages.
Who Needs General Liability Insurance?
If you own a registered business that provides products or services to other parties, you may want to consider general liability insurance. Some reasons to consider this type of coverage include:
- Allowing clients or customers to come to your office
- Having multiple employees who work with clients
- Actively advertising your business online or in the media
Almost any business with an office fits this description. In fact, even home-based business owners often obtain general liability insurance. When you work with third parties, you can find yourself liable for more damages than you may realize.
What Doesn't General Liability Insurance Include?
Some new business owners make the mistake of thinking that general liability insurance is the only form of insurance to get. However, general liability insurance does not cover all the large and unexpected costs a business can face, including:
- Business property damage
- Workplace injuries sustained by employees
- Cyber security breaches
Your PolicySweet® insurance experts can help you identify gaps in your current coverage and explain how to fill them.
How Much Will General Liability Insurance Cost?
There is no one-size-fits-all answer to the question of general liability insurance costs. Most businesses can expect to pay a monthly premium to retain active coverage. The size of this premium will be impacted by factors such as:
- Maximum coverage limits (i.e., how much coverage you can receive for specific damages)
- The size of the business
- The business's claims history (i.e., how often they've filed claims with previous insurance policies and why)
- Geographic location
- Specific industry risks
PolicySweet strives to make it easy to get a personalized quote on general liability insurance costs. All you have to do is tell us a bit about your business and we'll share a no-obligation quote right away.
Work With PolicySweet for Office Insurance
When an office faces a lawsuit, it can be easy to assume that they've made an avoidable mistake. The reality is that almost half of all small businesses find themselves in legal trouble each year. General liability insurance is there to provide protection from financial loss when legal matters arise.
Are you ready to learn more about your office insurance options? Request a quote from PolicySweet today.