It sounds dramatic, but it's true. Every single day, your business faces risks—from a client slipping on a wet floor to a simple social media post that results in a slander lawsuit.
This is why we need to talk about one of the most vital layers of protection for any company, big or small: General Liability (GL) Insurance.
If you've been wondering, "Do I really need General Liability coverage?" The answer is almost always a resounding yes. It's the essential safety net that can save your business from a devastating financial hit.
General Liability (GL) insurance, often called Commercial General Liability (CGL), is designed to protect your business from financial loss if it is held responsible for accidental harm to third parties (i.e., people who are not your employees).
| Coverage Type | What it Protects Against | A Real-World Example |
| Bodily Injury | Covers costs like medical bills and legal fees if a non-employee is physically hurt on your premises or due to your operations. | A delivery person trips over a box in your entryway and breaks an ankle. |
| Property Damage | Covers costs to repair or replace a third party's property that your business or employees accidentally damage. | Your employee drops a tool, scratching a client's expensive hardwood floor during a job. |
| Personal & Advertising Injury | Covers legal defense and settlements for non-physical injuries like libel, slander, or copyright infringement in your marketing materials. | A competitor sues you, claiming your advertising copy copied their slogan. |
When it comes to protecting your livelihood, having General Liability insurance is more than just a business expense—it's common sense and a sound financial decision.
Even one lawsuit for bodily injury or property damage is often enough to bankrupt a small business. The cost of hiring an attorney, paying court fees, and funding a settlement can instantly wipe out your savings and even put your personal assets at risk.
Small Business Liability Insurance provides you with the crucial coverage needed to pay for most damages, injuries, and medical costs related to accidents that could happen to your customers or clients. It also helps cover the massive legal fees and settlement costs if you are sued.
Let's say you own a restaurant, and one morning, a delivery driver slips and falls on a wet floor in your kitchen, breaking his arm. He sues the restaurant for medical costs, lost wages, and pain and suffering. If you have a General Liability policy with adequate coverage, you won't have to pay all the costs yourself. Your policy will step in to cover the driver's medical expenses, legal defense costs, and any final settlement or judgment, protecting your business's financial stability.
Scenario #2 : Property Damage
Imagine your catering team is setting up an event at a client's upscale home. While moving equipment, one of your employees accidentally backs a service cart into a very expensive antique china cabinet, smashing it to pieces. The client demands you replace the cabinet. Your General Liability policy would cover the repair or replacement cost of the damaged cabinet, saving your business from a significant out-of-pocket expense.
What aspect of GL insurance would you like to cover next—perhaps the common exclusions, or the factors that determine the cost?
If you’d like trusted guidance on General Liability or want a quick review of your current policy, our team is here to help—just reach out!
Phone: 469.269.6539
Email: sales@tansagency.com
Website: Tansagency.com
Contact Tans Agency for a policy review: 469.269.6539