General Liability Insurance for Consulting Businesses: Key Details
When you're ready to protect your business from expensive liability claims and unpredictable accidents, your insureon agent can help you create a custom policy for your specific risks and coverage needs. General Liability is an excellent starting point for your business protection plan thanks to its three basic categories of business liability: bodily injury, property damage, and personal or advertising injury (e.g., slander, libel, and copyright infringement). Keep reading to lean more.
Bodily Injury Claims
Though your company is generally considered a low-risk operation, General Liability Insurance is an essential safety net in case an unexpected injury happens to a third party on your business premises. As bodily injuries are among the most expensive liability claims a business can face, your business can only stand to benefit from this part of the policy's coverage, especially if you operate out of an office that welcomes clients and visitors.
No matter what safety precautions you take, accidents can happen, and seemingly innocuous injuries can flare into costly lawsuits. If someone sues your business for bodily damage, your GLI can cover legal funds, including lawyer fees, settlements or judgments, bond premiums, medical expenses, and more, depending on your policy limits. Even if the lawsuit is ultimately deemed a meritless case, your General Liability policy can still cover the costs associated with defending your business in court.
Your General Liability policy can also pay for medical costs, funeral expenses, and court-awarded compensation in the extreme case that a third party's injury or illness results in death. However, your own employees are not covered by this policy. If one of your employees suffers an injury or ailment on the job, you'll need Workers' Compensation Insurance for that protection.
Property Damage Claims
Your consulting business will likely have to handle your client's property in order to do your work. This may include files, computer equipment, products, and more, depending on your field and the clients you work with. The property damage coverage your General Liability Insurance provides can protect others' property and assets while they are in your custody or care. If one of you or one of your employees accidentally damages that property, your client could feasibly file a lawsuit against your consulting business. That's when your General Liability coverage would kick in to pay for the costs of a covered claim, up to your policy limits.
Personal and Advertising Injury Claims
If your marketing, human resources, or IT project consulting business uses advertising or promotional materials to attract clients, you'll benefit from the personal and advertising injury portion of your General Liability policy. This coverage can protect your business from allegations of non-physical damages to another person or entity, including copyright and brand infringement, libel, or slander.