There are some insurance policies that are generic and talked about often – home insurance, auto insurance, health insurance, just to name a few. Still, there are some insurance policies that while not mentioned often, are just as important. A prime example of this is general liability insurance. Especially if you are a business owner, it is going to be of the utmost importance to purchase a commercial liability insurance policy. There are a number of different things a commercial liability insurance policy can cover, but no business plan is complete without it. Since general liability can have a generic umbrella, let’s discuss exactly what the insurance policy will include or not include.
What is General Liability Insurance?
General Liability insurance is going to protect businesses from a certain number of situations that could happen on its premises. For example, this will include bodily injury, personal injury and property damage. While considered comprehensive, it’s important to note that it is not a complete catch-all. The insurance will cover legal fees and payouts that may happen from the previously described situations.
What Kind of Coverage Can I Expect?
Most standard policies are going to protect your business from claims of bodily injury, property damage, advertising injury, copyright infringement, and reputational harm.
One of the biggest advantages for investing in this kind of policy is if you do find yourself with a lawsuit for any of the aforementioned situations, it can easily bankrupt your business. This insurance will protect your assets and in the worst scenario and you lose a lawsuit, you will not be responsible for the full payout.
What Situations Doesn’t General Liability Insurance Cover?
Employee injuries – this situation often gets confusing. While a general liability policy will cover if a customer or client is injured on your business property, the same isn’t always true if it is your employee.
Property damage – a typical liability policy will cover you if a third party creates damage to your building. However, if your employee is responsible for that damage, you will not be protected.
Intentional damage – If a customer accidently backs out and hits your office, this would be covered. If one of your employees in a fit of rage throws a rock at the window and breaks it, this will not be covered.
Vehicles – This policy will not be a catch-all for all your business expenses. You will need to take out a separate auto policy to cover any vehicles you may use for your business.
Professional errors – This specifically can apply to poor advice given to customers. To protect yourself from professional errors as a business over or due to your employees, you may want to consider purchasing professional liability insurance.
One big takeaway to keep in mind is typically general liability insurance will protect you from third parties – that is, vendors, customers, etc. When you or your employees are at fault, it’s best to assume you would not be protected.
Is General Liability Insurance Tax-Deductible?
Yes, it is absolutely considered tax-deductible! This policy is a business expense, and such, regarded as the cost of doing business. Check with your CPA or Accountant professional to make sure this is written off correctly when filing taxes.
Protect Your Assets at TSL Insurance
You’ve worked hard to grow your business, now you need to do everything to protect this special asset. TSL Insurance is here to make sure your commercial liability insurance is comprehensive and makes sense for your specific situation. We are always ready to assist with free quotes and will make the time to sit down and explain each policy. If you have questions or are ready to make a plan for your business, reach out to our team and we’ll be happy to begin the process.