It is not compulsory for businesses to pay for general liability insurance. However, if you talk to consultants and experts, they will tell you one thing – This isn’t about choice. The contemporary consumer is extremely aware of its choices and likes to work with companies that can be trusted. One of the foremost things that potential clients are likely to check is insurance. Being an insured company does help in gaining market standing, but more than that, it helps in handling liability claims, which can eventually mean paying thousands of dollars. In this post, we are discussing why your company should pay for business insurance California.
Reviewing general liability insurance
Simply called GL or business liability insurance, general liability insurance can help you cover for claims related to physical harm/body injury, property damage, advertising injuries, slander and libel. Reputational harm is also covered in GL. There are certain kinds of claims that are not covered under business liability insurance. This includes auto accidents involving employees/managers, injury claims filed by employees (for which workers’ compensation insurance is necessary, damage to your business premises, and any issues that are related to your products and services.
When to consider GL in California?
Every company must spend on business insurance, but here are some more common grounds when such insurance is an absolute must –
- If your company has a storefront or office that’s visited by the public/vendors.
- If your company services demand workers to work at client’s homes and offices.
- If you spend considerable money on ads and marketing.
- If you are using social media extensively.
Sometimes, a competitor may claim that your business ad has affected their reputation, and they may decide to file a case against your company. Such claims can get expensive in no time, and long before actual claim amount is decided, you may have spent huge in legal consultation alone.
What’s the price of general liability insurance?
The cost of GL depends on many factors, but the first aspect that matters is the type of business you own. For example, if your company deals in home cleaning services, you may pay more for liability insurance than a company that deals in business consultation. Insurance claims history can also impact the cost of liability insurance California.
Do your homework well before opting for general liability insurance, but mind the golden words – DO NOT SKIP IT!