Obtaining General Liability Insurance – A Step-By-Step Guide

As a business owner, you know deep down, you cannot make errors. Even a small mistake like unintentional damage, an employee misspeaking at the wrong time or place, or customers slipping in your business place can cause major financial turmoil. These are only a few examples as there could be so many things that can affect your business.

This is why it is essential to keep your business protected by taking necessary steps like getting general liability insurance coverage. This can save you from legal claims relating to property damage, physical injury, libel defamation made by your clients, or customers.

If you are not sure how to buy general liability insurance for your business, we can help. We have provided a step-by-step guide, covering everything you need to know.

What Is A General Liability Insurance?

In simple words, general liability insurance protects your company against legal claims related to property damage, physical injury, and defamation made by customers, collaborators, or clients.

It doesn’t matter what type of business you own; you should have general liability insurance in place. That way you won’t have to worry much if something bad were to happen in your business place. Like an accident, or some other incident that you are considered responsible for.

Steps To Obtain General Liability Insurance

For small businesses, obtaining general liability insurance can feel a little daunting. But fret not! We have got your back! In this guide, we have covered details to simplify the process. 

Here’s what you need to do:

Ready the Required Documents

To get started, you need to first have all the required documents handy. Some of the information you will need includes:

  • Number of workers or employees working in your company
  • Basic contact details
  • Estimated yearly revenue
  • Your company location
  • What your business does and the risks involved
  • Information about your business premises
  • Documents to prove the duration you have owned the business

Once you have all these things sorted, you can proceed to the next step.

Look For A Reliable Agent

The next step is to find a broker or agent who specialises in general liability insurance. If you don’t want to hire an agent, you can directly contact the company.

However, many businesses find the process to be complex. Therefore, having an agent by your side could be helpful. But that’s up to you whether you want to work with an agent or not.

An experienced agent works with the insurance company and provides advice on which insurer to obtain it from. If your business involves complex risks, working with an agent is a good idea.

Determine Your Insurance Needs

Every company is different and requires business insurance plans to cover different things. This means, your business insurance is not the same as other companies. It is particularly tailored to suit your business needs.

General liability insurance helps protect your companies in various ways. In case, you are not familiar with the things it covers, you can talk to an agent or insurance company. They will guide you through the whole process, removing any confusion.

Choose The Right General Liability Policy

When it comes to choosing the right general liability policy, you are faced with different variables. You need to choose an insurance coverage that is suitable for your company.

Besides cost, there are other factors you need to consider. This includes:

  • How do you want to pay your premium?
  • Bundling insurance coverages
  • Coverage amounts

Choosing insurance coverage because it is cheap is never a good idea. You must check each quotation and review the details before making a decision. It is also a good idea to check the insurance company’s ratings. After all, you will not want your small business to struggle and be put on hold at a time of need.

Obtain Your General Liability Insurance

Liability claims are more common than you would imagine. Therefore, you must stay prepared when the time comes. Unexpected damages or injuries can happen at any time, and without insurance coverage, you are likely to be doomed.

Once you obtain your general liability insurance, you are sorted. It will not only protect your business but also give you peace of mind.

The importance of general liability insurance for a company cannot be overstated. Since you cannot see or predict the future, it is better to stay prepared. Obtaining general liability insurance protects your business from claims made by clients, or customers. No doubt, it is important for small businesses.