General liability insurance is a common commercial insurance that many businesses in Vermont purchase. It’s included in most business owners policies and commercial package policies, and it can be purchased as a stand-alone policy. Not all businesses, however, have this form of insurance. If you run a business that doesn’t already have general liability coverage, here are three reasons why you may want to get it.
Vermont Business Owners Should Consider Getting General Liability Insurance for These 3 Reasons
1. Protecting Your Business in Case of an Accident
First and foremost, general liability insurance provides valuable protection against many covered perils. The exact incidents that a policy provides coverage against can vary, but they may include things like:
Slips and falls that occur on company property
Other injuries people sustain that your business is held responsible for
Property damage your business causes
Copyright infringements your business commits
Libel and slander claims against your business
(Covered injuries don’t typically include injuries that employees sustain while working. These are usually covered by workers compensation insurance.)
Protection from these sorts of risks is, of course, the most important reason for purchasing general liability coverage. After all, this is the primary reason for getting most insurance policies.
2. Qualifying Your Business for Potential Contracts
Without general liability coverage, your business might not qualify for certain contracts. Governments, businesses, and other organizations sometimes require companies they hire to carry general liability coverage (and sometimes other coverages). Governments and businesses do this to protect themselves, and it provides them with at least a couple forms of protection.
First, if a hired company is found liable for property damage or an injury while working for a government or other business, the harmed party might sue any organization involved in the work. If the company that’s actually responsible isn’t able to provide adequate compensation, the government or business that hired them might also be sued. Making companies carry insurance reduces the likelihood that they can’t pay on a claim and, thus, minimizes the chances of the hiring government or business being sued if something happens.
Second, requiring hired companies to carry insurance also helps ensure that they’ll be able to pay for any property damage they cause while working. If a hired company causes significant damage, their insurer may cover the cost of making any necessary repairs.
3. Meeting the Requirements of Your Vermont Business’ Lease or Loan
Finally, if your Vermont business has a lease or loan, it might be required by the terms of the lease or loan to maintain general liability coverage. Property owners often require tenants to have coverage in order to reduce the risk that a tenant’s company can’t pay rent after an incident. Banks and other lenders also frequently place a similar requirement on businesses to protect their financial investment in the business from potential lawsuits.
Get General Liability Insurance for Your Business
If your Vermont business doesn’t already have general liability insurance, contact an independent insurance agent who’s licensed in the state. Even if your business has insurance, but you'd like the coverage reviewed, talk with an agent. Our independent agents can help you assess your business' insurance needs and find general liability coverage that will meets those needs. They can also compare different policies to ensure you get a great rate on a policy.