Running a business means ensuring that all the cogs are working properly, and that no elements of the clockwork are broken or missing. Insurance is a vital part of this process, particularly if you have employees or any contact with customers and partners. You may be wondering, however, what types of insurance you need.

Commercial general liability insurance, or GLI, is a type of insurance policy designed to protect you as the business owner and the company in general from common risks, including property damage or injury sustained on the premises. Essentially, general liability business insurance protects you from having to pay out of pocket for things like doctors’ or attorneys’ fees. It’s a way of protecting your assets so your business can continue to operate and you can ensure your employees are paid. For small businesses that lack this type of insurance, a single uninsured claim could decimate your operating budget.

What Does General Liability Insurance Cover?

To help determine if you need GLI insurance, it’s a good idea to understand what types of events it protects your business against. GLI will protect you and your business from the following:

Bodily injuries. These include any type of illness or injury that may have resulted from your business operations, such falls on your premises by customers or visitors. Note that it will not cover employee on-the-job injuries, as those are covered by your worker’s compensation insurance policy.  

Property damage. This damage may occur on your own premises or on a customer’s premises. (Imagine one of your employees breaks a window accidentally while performing work at a client site.) GLI will cover the cost of the resulting repairs.

Libel or slander. Depending on the nature of your business, you may be open to being sued for libel or slander and damage to another person or business’ reputation. GLI insurance will help pay your business’ legal fees if you are sued.

Administrative costs. GLI will also help you defray any administrative costs you might accrue to handle covered claims, as well as court costs, judgments, and settlements.

How Much Do GLI Premiums Cost?

This will depend on a number of factors, including the size and nature of your business, the number of employees you have, your physical premises, the condition of your building and other premises and how long you’ve been in business. The cost of the premium will also depend on what type of policy you prefer and how much coverage you need.

Talk to an Insurance Agent

To make sure you have the right type of GLI coverage in place and get an idea of how much it will cost, contact an independent insurance agent who can help you build a policy that is right for your business. In Connecticut, Petruzelo Insurance offers personal and business policies that fit your needs and protect your home and business. Call us at 866-479-3327 or visit our web site for more information.