General Liability Insurance
General liability coverage is an essential form of business insurance that is widely used by businesses.
Small, medium, and large businesses can all benefit from getting a smart general liability plan with a friendly and affordable insurance company.
General liability insurance is important. We strongly recommend that all companies carry it.
To learn more, you can call us at our Memphis number: (702) 850-7711 or our Las Vegas line: (901) 306-8100.
MORE: What Is The Difference Between General Liability And Professional Liability?
What Does General Liability Insurance Cover?
General liability covers the following:
- Accidents that cause bodily injury to non-employees
- Loss of income due to injury
- Copyright infringement
- Personal injury (reputational harm), e.g., slander or libel
- Customer or client property damage
- Tools and equipment coverage (This is an add-on.)
Note About Your Coverage
It’s important to keep in mind that general liability insurance only covers injuries for people who are not employees. To cover the cost of employee medical treatment, lost income, and work-related injuries, your company needs workers’ compensation insurance.
Likewise, general liability insurance only covers property damage for your customers and clients. If you are digging an irrigation ditch for someone and hit their water line, it’ll help cover the cost of the repair. To protect your own business from property damage, however, you’ll need to get commercial property insurance.
Difference Between General Liability Insurance and Business Insurance
Business insurance is an umbrella term that consists of many different kinds of insurance available to your business.
It includes but is not limited to professional liability insurance, business income insurance, commercial flood insurance, employment practices liability (EPL) insurance, and of course, general liability insurance.
Since business insurance in Tennessee offers a wide range of protection for your business, it’s quite a complex and nuanced subject as a whole.
With that said, here are a few of the most commonly used insurances that we sell:
- Commercial Auto & Equipment Breakdown Insurance
- Workers Compensation Insurance
- Cyber Liability
- Packages & Business Owners Policy (BOP)
- Business Interruption Insurance
Is General Liability Insurance Required by Law?
The answer is that it’s complicated.
General liability insurance is NOT required for all businesses in Tennessee. However, the state does require general contractors and a few other kinds of businesses to have it.
Other businesses that need liability insurance coverage include real estate companies (and individual real estate agents), dental practices, and accounting firms.
The best way to find out if you need general liability insurance for your company is to call your state’s Department of Commerce and Insurance and ask. You can also call us for guidance and information.
If you choose to call your Department of Commerce and Insurance, then we recommend asking them about whether or not you’ll need general liability insurance before leasing property, selling food, dealing with sensitive information, or obtaining a license.
There are complexities involving each of these areas that may require the guidance of an expert.
When Exactly Do You Need General Liability Insurance?
Aside from what we’ve already mentioned, you typically only need general liability insurance if a client requires you to get it before signing a contract.
Contracts show that you’re reliable and that you can cover your customers’ or your clients’ expenses if there is an accident on the job.
Common sense says that smaller companies are less likely to require that you purchase general liability insurance to sign a contract.
Larger companies, on the other hand, with more at stake, are arguably more likely to be incentivized to ask that you secure substantial volumes of coverage.
Learn More About Your General Liability Policy
One other advantage of general liability insurance is that it protects you from certain types of lawsuits. To learn more about this issue, call us today at our Memphis number: (702) 850-7711 or our Las Vegas line: (901) 306-8100.
The Risks of Not Having General Liability Coverage
The biggest risk you face with not having general liability insurance is running into a costly legal issue that can hinder your business, cut into your profits, and cause stress for you and your team.
Fighting a case in court is not cheap, as we’re sure you know. Attorney fees can be enormous, ranging anywhere from $100 to $400 an hour. Some attorneys charge even more.
General liability insurance, while it doesn’t cover every issue that you could possibly run into while running a business, acts as a good basic blanket of protection for you.
Another downside of not having general liability insurance is that people might not want to do business with you.
General Liability Insurance Cost
The average monthly cost of general liability insurance for most businesses ranges between $25 and $100.
Where you fall within this range largely hinges on the following:
- What type of business you have
- How long you’ve been running your business for
- Your insurance claims history
- The details of your policy
- Where your business is located
- What condition your building is in
With that said, there are businesses that pay significantly more for liability insurance than the range mentioned above. Event venues, for example, pay around $250 per month for coverage.
Got Insurance Questions?
To learn more about your liability insurance cost, call us today at our Las Vegas number: (702) 850-7711 or our Memphis line: (901) 306-8100.
How Much General Liability Coverage Do I Need?
The amount of insurance you need depends on the size of your business.
If your business is smaller, then it’s a good idea to get a $2MM aggregate policy limit.
To understand what this means, imagine if you got four claims of $500,000 each over the course of a year from clients whose equipment had been damaged by your employees. This would cause you to meet your $2MM aggregate limit.
From this point forward, you would have to wait a year until your year-long policy period reset.
MORE: How is General Liability Insurance Calculated for Contractors?
Who Should Buy a Liability Insurance?
It’s a very good idea to get general liability insurance if your business meets any of the following criteria:
- You run a client or customer-facing business
- You have temporary workers or employees
- You are actively running ads for your business
- You run an event-based business, such as a white water rafting company
- You are a well-known company that may face issues of libel and slander
- You work as a contractor
- You are active on social media
- You rent out locations to use for your business
Is Liability Insurance Tax Deductible?
Yes, it is. You can write off your liability insurance premium as one of your business expenses. We would, however, recommend that you speak with your certified public accountant (CPA) and ask them about how to go about this.
Does General Liability Insurance Have a Deductible?
Sometimes, yes. Not all companies require that you pay a deductible, however.
Does General Liability Insurance Cover Reputational Harm?
Yes, it does.
Does General Liability Cover Copyright Infringement?
Yes and no. It only covers unintentional copyright infringement. To protect against more serious forms of theft of your intellectual property, you might consider getting intellectual property coverage.
What About Coverage for Professional Error or Malicious Acts?
Liability insurance does not provide coverage for professional errors.
You will need professional liability insurance to protect yourself from claims stemming from mistakes of this kind.
Likewise, general liability does not protect you from intentional acts of fraud or sabotage by you or your employees.
Does General Liability Cover Auto Accidents?
No, it doesn’t. To cover your vehicle, you do need auto insurance. We offer collision, comprehensive, and vehicle liability insurance.
Does General Liability Cover Theft?
No, it sure doesn’t. Theft is considered to be a “first-party” damage. General liability only covers third-party damages, i.e., it covers claims against you that are made by third parties.
Find the Right Insurance Plan with Us
One of the most important things to consider when it comes to getting insurance is how much it costs.
To help you save money with your insurance plan, we offer you flexible payment plans that are designed to fit your budget.
Business Liability Insurance Coverage
Our insurance plans are multi-varied and can accommodate a wide range of your needs.
To learn more, call us at our Las Vegas line: (702) 850-7711 or our Memphis number: (901) 306-8100
Why Choose All n One Bonding and Insurance
There are several reasons why we might be the right fit for you.
- We are highly flexible – As already mentioned above, we offer you highly flexible payment plans designed to fit your needs and budget. We make the process of finding your plan easy.
- We are always available – We are committed to our clients, which is why our expert insurance agents are available 24/7 to assist you.
- We are very experienced – We’ve been helping people get bail bonds in Tennessee for years and know the ins and outs of the industry. With our experience, we can help you secure just the right fit for your needs.
