A general liability insurance policy is wise if you own a small or medium-sized business. Anyone who uses your products or services, or who comes into contact with you or your employees, can decide to file a claim or lawsuit against your business. Having liability insurance can protect you from the costly expenses of legally liable damages that your business, product or service might cause.

Here’s what general liability insurance for small businesses covers:

  • Claims involving bodily injury or property damage resulting from accidents on your premises, or from your products, operations, or advertising for your business
  • Expenses relating to out-of-court settlements, litigation, and judgments awarded by courts that you are legally liable for
  • Medical expenses in case of injury to a third party.

There are also some situations in which you would not protected by business liability insurance:

  • Employees sustaining injuries from being hurt on the job
  • Assault caused by an employee
  • Automobile accidents
  • Punitive damages

Even though challenging situations may arise, as a savvy business owner you can manage your liability risks by having commercial liability insurance.