Why You Should Consider Increasing Your General Liability Insurance

General liability insurance covers you in the event of lawsuits and claims filed against you. One lawsuit can destroy everything that you’ve worked for, especially if your business is still in its initial stage.  While you think about the possibilities of these damages and the risks attached, consider the benefits of increasing your liability coverage.

If you are a business owner, remember that you are at risk of a lawsuit in several different scenarios. Perhaps a customer alleged that your products do not meet a certain standard and caused them to get sick. Maybe an unfortunate accident happened to customers within your business premises. Regardless of whether you are at fault or not, you can be sued.

In such cases, your general liability insurance policy comes in handy. However, you are only protected if the claim is covered through your policy. Basic general liability policies do not cover every business risk, which is why you should consider increasing your coverage. Here is a comprehensive guide on ways to increase your general liability insurance.

General Liability Insurance Explained

Liability insurance was created to protect you when you accidentally cause damage to others. General liability coverage is the foundation your business needs to function smoothly. It includes:

  • Bodily injury coverage- which protects you if one of your customers gets injured while visiting your business.
  • Property damage coverage- to protect you if your products accidentally cause harm. It also protects you if one of your customers causes damage to someone else’s property. A common example is if you serve alcohol to a customer and they damage someone’s property because they are intoxicated.
  • Personal injury coverage- which covers your business against allegations of slander and libel.

Ways to Increase Your General Liability Insurance

  1. Higher Liability Coverage Limits

    Your general liability insurance policy will only cover you until it reaches the maximum limit. Once you have reached the maximum limit on a claim, you are left having to cover the difference out of pocket unless you increase your coverage. You should increase your coverage limit to the point where your business is not at risk when dealing with an expensive claim. Speak with your agent about the appropriate level of coverage for your type of business.

  2. Umbrella Policy

    Even if you increase your liability coverage limits, there are certain events it may not cover. In this type of situation, you may still be left unprotected. Umbrella liability insurance provides coverage for case not covered by your typical general liability insurance.

  3. Endorsements

    Endorsements are extra layers of your general liability policy that help protect you in more situations than normal. Think of it as stretching your policy.  An example of endorsement is cyber security coverage. Thousands of people use the internet every day and can be vulnerable to cyber-attacks from hackers. If a computer hack infiltrates your network and corrupts sensitive information, you are covered by cyber liability protection lawsuits. Other popular exclusions include employment practices liability insurance and Errors & Omissions insurance.

General liability insurance is designed to help you protect your investment. You can customize the policy to align with the specific risks associated with operating your business. At Locke Insurance Group, we will help you find the right policy to suit your business need. Contact us today to get started!

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