If your company hires employees, you should know about General Liability Insurance.
General Liability Insurance is a type of policy that can protect you from financial losses or liability if someone sues you for damages. A typical policy will cover the company from lawsuits and injuries caused by their employees like what Michigan Business Insurance provides.
1. What is General Liability Insurance
The first thing that business owners should know about General Liability Insurance is that it covers a company from lawsuits and injuries caused by their employees.
2. Employees Affecting a Business’s Risk
The second thing that business owners should know about this type of insurance is that if your company hires employees, you are at risk of being sued or held accountable for what they do. This is especially important to consider if your company has multiple locations or job sites throughout different states. In the case of an incident, there could be many people filing claims against your business simultaneously — which could result in large payments and even bankruptcy!
3. Be Aware of Risks Associated with Employees
When hiring new employees, make sure you understand all of the risks associated with them because if they are deemed negligent in their duties, the employer may be held liable. You need to know that General Liability Insurance will protect you from the costs associated with these lawsuits.
4. A General Liability’s Number One Priority is to Reduce or Cover Costs
Another thing that business owners should know about General Liability Insurance because its number one priority is to reduce or cover costs. The best way for this policy to do so is by helping you pay court fees and settlement costs since they could be costly and difficult to manage alone. As a result, having an insurance company by your side can help lessen the financial burden of such legal matters arising from employees.
5. Know What to Cover in Your Policy
The last thing that business owners should know about General Liability Insurance is that it typically covers bodily injury and property damage caused by your employees during work hours. If you want to cover certain incidents outside of normal working hours, this will cost extra, so keep an eye out for additional premiums. Additionally, when building your policy, make sure there are no missing gaps or check out this page for guidance.
For example, suppose you have independent contractors or part-time workers who are not considered employees. In that case, coverage may end up being denied later on — leaving important pieces of your company unprotected, which lead to financial ruin. Don’t take that chance.
Bonus tip: Make Sure You Have Enough Coverage
Last but not least, it is important to make sure that the General Liability Insurance policy you choose has enough coverage for your company. A typical policy will cover the company from up to $1 million in damages — but if your company makes more than $5 million per year, then you may want to consider additional protection, which can cost extra.
General Liability Insurance is an important type of insurance for all businesses that have employees under their roof! Ensure this type of coverage is included in your business’s policy today.