The Basics of General Liability Insurance in Texas

General liability insurance is important if you are a business owner who wants to protect yourself from third-party claims that could destroy your business. You can operate your business without insurance, but doing so will expose you to risks that could potentially interrupt your operations if someone were to sue you for any damages they incurred as a result of using your products/services or even by being on your business premises.

What Is Covered under General Liability Insurance?

General liability insurance covers various risks, including

    • Third-party property damage- covers repairs and replacement costs incurred if your business damages a third party’s property
    • Third-party bodily injury- covers injuries sustained by customers or other third parties who get hurt while visiting your business premises
    • Advertising liability- covers you from lawsuits related to copyright infringement, such as when a business sues you for using their copyrighted photos in your ad campaigns without their permission
    • Reputational harm- covers you and your employees if a third party sues your business for libel/slander

Understanding your business and the type of related risks is extremely important. Your insurer will look at your business’ known risks to help you determine what amount of coverage you will need.

However, there are certain claims which will not be covered by general liability insurance. These include:

  • Workers claims related to work-related illness or injuries- these will be covered by workers’ comp insurance
  • Damages to your business property- these will be covered by commercial property insurance
  • Mistakes/ errors made while providing services- these will be covered by professional liability insurance

Why Small Businesses Need Commercial General Liability Insurance?

As a small business owner, you have limited resources to meet any additional financial liability that might arise in the form of business-related lawsuits. Having a general liability policy will benefit you in the following ways:

  • Build brand image-

Having this policy will let your prospective customers know that you actually care for them and are ready to be held accountable for any harm caused to them. This, in turn, helps you win their trust and build your brand image.

  • Get more contracts-

Most of your clients will not want to be held liable for your mistakes. Other larger companies will seek some form of coverage before entering into contracts with your business. General liability insurance assures them of being covered against any losses caused by your product, services, or actions.

  • Sustains your business-

Accidents can happen at any time. According to statistics, only 50% of small businesses survive the first 5 years of business. As a small business owner, you already face several limitations in terms of resources. Being without adequate insurance coverage will only add to your financial burdens in the event of a business-related lawsuit. Therefore, it is ideal to cover your business with general liability insurance.

How Can You Get General Liability Insurance?

The easiest way to get the general liability insurance you need is to get in touch with experts who will take the time to learn about you and your business. To get the right type of policy and amount of coverage you need, call our reputable agents at J. Archer Insurance Group, who will review the types of risk you face as well as the net worth of your business. We are here to assist you will all your coverage needs today!

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