Why General Liability Insurance is Non-Negotiable for Every Small Business
You’ve poured your heart, time, and capital into launching your startup or small business. You have a great product, solid marketing, and happy customers. But what protects the business from the unexpected—the lawsuits, the injuries, and the accidents that can wipe out a small company overnight?
The answer is General Liability Insurance (GL).
What is General Liability Insurance?
General Liability Insurance is foundational business coverage that protects your company from claims resulting from property damage, bodily injury, and sometimes personal and advertising injury caused by your business operations.
It is often called “slip-and-fall” insurance, but its scope is far broader.
3 Critical Protections Provided by GL Insurance
1. Bodily Injury
If a non-employee is injured on your premises or as a direct result of your work, this coverage pays for their medical expenses and covers the legal fees if they sue your business.
- Example: A customer slips on a wet floor in your retail store and breaks an ankle. GL insurance covers the medical bills and the cost of the defense lawyer.
2. Property Damage
This covers damage your business or employees cause to someone else’s property.
- Example: You run a consulting business, and while setting up equipment at a client’s office, one of your team members accidentally knocks over an expensive server rack. GL insurance would cover the cost of repair or replacement.
3. Personal and Advertising Injury
This protects you from claims of libel, slander, copyright infringement in your advertising, or false arrest. This is increasingly important in today’s digital, review-driven world.
- Example: You publish a social media post that a competitor claims is slanderous or infringes on their copyrighted material. Your GL policy provides legal defense coverage.
GL Insurance: More Than Just Protection
Beyond the financial and legal protection, General Liability Insurance is often required simply to operate your business:
- Contracts: Many clients, landlords, and commercial contracts require you to carry GL coverage before they will sign an agreement.
- Reputation: Demonstrating that you are properly insured shows professionalism and financial responsibility to partners and customers.
Don’t wait until you receive a legal notice. Securing a General Liability policy should be one of the first and most fundamental steps you take when formalizing your business operations.