What Is Commercial Liability Insurance?
May 28, 2019
Typically, when starting a business, it’s easy to get caught up with the intricacies of getting the company on its feet and forgetting about things like insurance.
There’s no doubt that starting and running a business involves plenty of risks.
Therefore, you must take the initiative to secure your future – and that includes ensuring you get commercial liability insurance for your business.
Why Your Business Needs Insurance
As a result, they dive into the business head fast and hope for the best.
However, all successful business people are pessimists, and hoping for the best case scenario is often a catastrophic mistake.
In business, the safest approach is to consider every transaction, disgruntled employee or demanding customer as a risk to your business.
This way, you can protect your business from potential lawsuits and save hundreds of thousands of dollars in the process.
After all, no matter what the industry is, or the size and location of your business, the risks are real.
What would happen to your business if a lawsuit hit the business? Are you confident that your business can continue to operate without any setbacks?
Chances are that something like this could sink your business. That’s why you need commercial general liability insurance.
What Is Commercial Liability Insurance?
Commercial liability insurance, which is also known as business liability insurance, is the shield that protects your investment.
It provides you with a defence against claims that might arise as part of your daily business operations.
Commercial liability insurance covers the following:
- Third party physical damages
- Property damage
- Court costs
- Advertising injury
The peace of mind you receive from knowing that your business is protected against all the above scenarios is priceless.
For this reason, it’s highly recommended that all companies, even those operating from home, have commercial liability insurance.
What Commercial Liability Insurance Doesn’t Cover
While the term “general” is sometimes used when it comes to general liability or commercial liability insurance, it doesn’t necessarily mean that your company is protected from everything.
Moreover, each business will have a different business liability policy depending on its unique needs.
Negligence is an excellent example of what commercial liability insurance does not cover as a standard feature.
Therefore, if your business needs that type of cover, it’s up to you to make negligence part of the policy, and this comes at an extra cost.
Accounts receivable cover is another example of what is not included under business liability insurance.
Therefore, if your company needs a particular type of cover under the policy, you can work together with your insurance agent to develop a policy that suits you and your business.
What Is the Cost of Commercial Liability Insurance?
The cost of commercial liability coverage can vary significantly as each policy is unique for each business.
For instance, a company that includes negligence under their general liability policy is likely to pay more compared to a business that opts for a standard policy.
Also, there are other factors that might affect the cost of the policy. These factors include:
- The industry
- The state you operate your business
- The business’s claims history
- The size of the company
- Number of employees
Are you concerned about the cost of commercial liability insurance?
Don’t be. A reliable insurance provider can help you out by providing your business with the following options:
- Tailored coverage
- Monthly payments options
If you are genuinely interested in running a successful business, then you shouldn’t scrimp on business liability insurance.
You might think that your firm doesn’t need to get general liability coverage, but none of us has a crystal ball and we don’t know what business issues lie ahead.
Commercial general liability insurance has numerous benefits and provides your business with the best defence and peace of mind, which is something you can’t put a price on.
For an obligation-free, competitive quote, professional insurance advice, or more information on how we can help you, please contact one of our expert consultants today on (08) 8357 1422 or send a message through our website.
LEAVE A COMMENT