As a small business owner, there are possibilities of risks and threats every day. A single suing case could ruin your company monetarily and negatively affect its reputation. That is one reason every business invests in general liability insurance Texas.

General penalty coverage is a crucial part of your company's defense strategy. You will not have to worry about being sued even if there is a lapse of service from your employees.

What is general liability insurance?

General liability insurance, also known as commercial general liability (CGL), helps protect you from standard risks arising from everyday business activities. It covers impairments on your assumptions and damages resulting from your operations.

General liability insurance is comprehensive with the aim of protecting your business from financial losses due to third-party claims of bodily injury, property damage, and personal and advertising injury.

Why general liability insurance is important?

If you have a customer visiting your retail store and accidentally slipping on a wet floor, falling from a chair due to its breaking, or an employee accidentally impairing a client's expensive outdoor sculpture while providing landscaping services, then general liability insurance coverage will take care of the expenses, whether it is medical, repair or potential legal fees.

Some areas of general liability coverage include:

1] Physical injury: Medical expenses, ambulance fees, and lost wages for someone your business injured or a third party injured on your business property.

2] Property damage: Restorations or alternates for injury to your client or someone else's property when you or your employees are working.

3] Libel and slander: Legal costs and settlements when there is a case filed of harming another person's business or reputation.

What does general liability insurance not cover?

General liability insurance provides several advantages but doesn't include every likely strategy. You must understand what it doesn't cover to avoid mistakes in calculations that could leave your business vulnerable.

1] Commercial auto accidents: You'll need to buy separate auto insurance to protect your staff from accidents while driving business vehicles.

2] Employee work-related injuries: General liability insurance does not covet workers' compensation insurance or employee injuries and illnesses while on the job.

3] Business property damage: Damage to your property, such as your building, equipment, or inventory, requires a commercial property insurance policy.

4] Professional errors: Errors and omissions (E&O)insurance is a type of professional liability insurance that covers mistakes that cause clients to suffer financial losses.

5] Claims that exceed liability limits: Every insurance coverage has a limit on how much it will pay out for a claim. You' will be liable to pay the difference from your funds.

Conclusion:

Most businesses take advantage of commercial general liability insurance. It's beneficial for companies with public interaction, social media promotion, operations at third-party locations (like clients' homes), or temporary or contract workers. Businesses commonly needing this coverage include accountants, contractors, landscapers, lawyers, retailers, restaurants, marketing agencies, and service-based businesses.