Here’s Everything You Need To Know About General Liability Insurance
A general liability insurance policy can be considered a safety net for businesses to fall back on during times of distress. It offers businesses—big or small—protection by covering the defense costs as well as other legal costs arising when the company is facing lawsuits.
What Is It?
It also protects the business in case a customer suffers an accident, a customer accuses the company of property damage, and advertises injury. It can allow you to protect your business from costly lawsuits that often leave businesses bankrupt. Additionally, it helps you qualify for leases and contracts, making business processes more manageable. Almost every business insurance provider typically sells general liability insurance in Maryland.
Is It Mandatory?
The short answer is no. The accurate answer depends on the projects your business will undertake in the future. While many states don’t mandate general liability insurance for many industries, a few sectors, such as construction, require you to carry an insurance policy at work.
A business might also need insurance if they rent or own an office or workspace if their rental contract requests proof of general liability insurance. Your landlord may ask for a certificate as proof even before they renew a contract or lease.
Some of the most common reasons businesses seek insurance, even if it’s not mandatory, are:
- Professional License Applications
If you’re pursuing personal practice as a broker, doctor, accountant, and so on, the state will request a general liability insurance policy (often recurring) as a mandatory document to issue you a license.
- Business Partnerships
If you’re a company looking to expand its workforce temporarily or on contract, you need to obtain an insurance policy.
- Signing A Lease
If your job requires you to work on a third-party site, such as an electrician, plumbing service, and so on, you’d need an insurance policy before you can even begin your work.
Do Insurance Costs Vary?
Yes! Your general liability insurance policy would vary greatly depending on the plan you choose, the amount of coverage you require from the plan, the nature of and the risk factors native to your industry, and the location of your company.
Additionally, policy plans are available at a fixed amount that make things easier for businesses. You should consult a local insurance agent for more details.
General VS Professional Liability Insurance
Thankfully, getting liability insurance isn’t a hassle anymore. So, you can now look for something that best suits you and your business’ needs! But is there a difference?
General liability insurance policies cover the bare essentials like customer injuries and accidents, property damages, accidents at the workspace, and more. They are enough to keep your business safe and functioning regardless of the circumstances.
On the other hand, professional liability insurance policies give you added coverage. If you’re a professional service provider, such policies give you enhanced protection against such problems as negligent services, unhappy customers, incomplete or poor-quality work, or failure to keep contractual obligations. This saves you from hefty charges that may apply in case of lawsuits against you.
Services like BMC Insurance make learning about various kinds of policies and seeking them easy and convenient for you. So take the first step to protect your business today!