When getting a business owners policy, or BOP, you'll receive a few different elements of commercial insurance. Among these will likely be general liability insurance. Do not ignore this coverage, as it's critical for your business. With it, you can protect yourself against the harm you might cause others. How does this protection work?
Most BOPs will contain general liability insurance. However, it is up to you to determine whether standard coverage is right for you. At times, you might need to add extra protection to your BOP.
What Is General Liability Coverage?
BOPs contain multiple types of commercial insurance within one package, for one premium. Most will contain some amount of general liability insurance.
General liability coverage protects the business against harm it causes other parties. If someone gets hurt through their interaction with your business, they might expect or demand compensation. This coverage can help the business repay those parties. Most general liability policies contain:
- Bodily Injury Coverage: This pays in case someone gets physically hurt by doing business with you. It might help you cover that person's medical bills, legal action fees and other costs.
- Property Damage Insurance: If your actions damage a client's property, you might have to repay them. This element of protection might be able to step in during these cases.
Let's say that when visiting your store, a customer accidentally trips and falls. They might sustain various injuries, which in turn might cost a lot of money. Because the accident happened on your premises, you might have a responsibility to pick up the check for these losses. And even if the accident was totally unpreventable, that still might not free you from your obligation.
In such a situation, your company's general liability insurance can step in to pay the affected party's costs. Therefore, it is critical financial protection for the business, not just the harmed customer. With this coverage, you won't have to worry about how you can compensate someone because of an accident.
Expanding General Liability Coverage
Your BOP's general liability protection is a good starting point. However, it might not fully cover every liability risks on your property. You should therefore consider expanding your coverage as needed. Some of the policies that might prove beneficial add-ons include:
- Cyber Liability Coverage, which protects against exposure or loss of sensitive customer data.
- Errors and Omissions Protection that insures against financial harmed caused by bad professional advice or clerical mistakes.
Talk to one of Bruening Insurance's experienced agents about the operating risks within your business. We can help you determine the appropriate coverage for your commercial liabilities.