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50% of Private Companies Over-Estimate Their General Liability Insurance Protection

11. February 2014 08:18

Feet exposed at the bottom of the bed

More than half of the private companies interviewed for the new Private Company Risk Survey by Chubb Corp. said that they chose to forgo certain types of liability insurance because they felt they were already covered through their Commercial General Liability Insurance policy.

It’s true that General Liability Insurance does cover a lot, and most of the time, it does so at an affordable price (for more on that, check out our General Liability Insurance Cost Analysis). However, this coverage does not and cannot cover all forms of liability. For example, a typical Commercial General Liability policy does not cover…

Here’s the really troubling thing about the report: 44 percent of the surveyed companies experienced at least one of the above loss events in the past three years, meaning that lots of business owners likely found out the hard way that their General Liability Insurance didn’t protect them as fully as they thought it did.

What Small-Business Owners Need to Know About Their Liability Exposures

It’s not that business owners don’t understand the existence of their liability exposures – they just tend to think that their Commercial General Liability Insurance can do more than it can. Take a look at some of these numbers from the Chubb report. They represent the number of surveyed “non-buyer” business owners who mistakenly thought their liability exposures were remedied by CGL policies:

In all cases, the number of businesses who thought they had coverage is close to half. But business owners need to add the corresponding (and specially designed!) insurance policy to their small business insurance plans if they want protection for the above exposures.

Common Situations that Leave Small Businesses at Risk for Liability Lawsuits

As a small-business owner, are you certain that all your liability exposures are covered by the appropriate insurance policies? According to the Chubb report, there are a few common situations that can leave businesses unwittingly at risk for liability claims, including…

Take a good look at your General Liability Insurance policy and your liability exposures. You may find that it’s time to discuss your small business protection plan with your insurance agent.

Tags:

Data Breach | Errors & Omissions | Errors and Omissions Insurance | General Liability Insurance | Risk Management | Small Business Risk Management

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