If business insurance were Thanksgiving dinner, Commercial General Liability Insurance would be the turkey. It's the starting point and centerpiece of any business's commercial insurance plan.
As the video explains, Commercial General Liability Insurance is usually the first policy small-business owners purchase because they often need it to sign commerical leases and client contracts.
General Liability Insurance can help pay for lawsuits over:
- Third-party injuries.
- Third-party property damage.
- Product liability.
- Advertising injuries.
It's tempting to think you'll never get sued, but lawsuits are part of the business landscape. And when a small business is sued, the costs can be devastating. A 2005 study [PDF] by the Small Business Administration found that a lawsuit costs between $3,000 and $150,000 for a small business. In today's dollars, that's closer to $4,000 to $190,000.
Put simply, General Liability Insurance is an essential safety net when you don't have deep pockets. Let's take a look at a few examples of the lawsuits this policy can cover.