General liability insurance (GL) is a protection plan that can protect you from a variety of general liability claims. Property damage, personal injury, bodily injury, and advertising errors are all covered through general liability insurance plans. Issues in day to day business activities such as customer service, interaction with customers, and renting property are also covered. If your business is sued or under any lawsuits this general insurance will protect you. Below are 4 steps to help you in selecting the proper general liability insurance for your business.
Step #1: Choose a Trustworthy Insurance Broker
- Make sure to choose an insurance broker that is well trained in the field and has a lot of practice. You want to make sure that they know what they are doing to set you up with the best possible insurance plan on the market. A good insurance broker will always put you before commission to make sure that all your business protection needs are met.
Step #2: Determine the Risks
- Educate your insurance broker on all of your business risks. A business broker will have to determine your level of risk when determining what policy best suits your needs, so it is important that they receive this information. In a general liability insurance plan, third-party lawsuits are typically covered, some of them being:
- Risk of property damage (ex: something catching on fire)
- Risk of bodily injury/accidents on your property (ex: someone falling over a spill)
- Reputation damage (ex: risk of harm to your reputation from posting online or on social media sites)
- Copyright infringement (ex: being sued for the copyright information that is similar to others)
Step #3: Review the Policy
- This is such an important step in the insurance process yet is often forgotten by many. By reading the policy you will have an idea of what your business is specifically covered for. Sometimes you may realize that you are not covered for something that you should be, and you can use this to edit your insurance plan. An insurance broker can schedule an appointment with you to sit down and make sure your plan is exactly what you need.
Step #4: Review Insurance Policy Yearly
- If you have any changes in your company or business, you may need some changes to your insurance policy. That is why it is extremely important to review your insurance policy annually. Sometimes liabilities change and you may be under-insured or even over-insured for something that you shouldn’t be. Also, when insurance plans change, so does your insurance rate. Many people aren’t aware that sometimes you can save money by reviewing your insurance policy annually. So this does help to benefit the business. Make sure to contact your broker to discuss that your plan is still specific to your business needs.
If you follow these four steps when purchasing your general liability insurance, you will be on the right path to good protection.