Commercial general liability insurance is a vital aspect of any company’s business plan. Know more about the significance of this plan in running a successful business.
With the increased awareness of legal rights, lawsuits may come in your way of business anytime. Long-running and complex lawsuits can devastate your business completely. Keeping in mind the unpredictable business environment, being well prepared for such risks is a prudent choice. CGL policies are the first line of defence against many general liability claims that your business may face.
What is commercial general liability insurance?
Commercial general liability insurance is formulated for protecting your business assets when an incident resulted out of non-professional act causes your company to be sued by the third party. Commercial general liability insurance provides coverage against claims for bodily injury, property damage, personal and advertising injury caused to the third party by your company, its product, business operations or any other activity associated with your business. CGL insurance policy also provides a cover for defending the lawsuit and the entire legal cost if your company is sued.
You can secure your business by purchasing this insurance policy. Here are few reasons that make it most important for business of any size.
Protects your business assets
While running a business, you have to come in contact with your customers, other companies and entities, vendors and public in general. In business, human errors do occur; no one is perfect. Any negligence and mistakes in business operation may result in accidents causing injury to people you are dealing with (third parties). When something goes wrong, your company will be held accountable for losses. Though you may be able to manage some smaller claims, an expensive claim can result in an enormous cost to your business. For example, accident involving hazardous substances can spoil the environment and people around very badly resulting in a highly expensive claim. If you have a CGL policy, you can safeguard your business asset by transferring your legal and financial responsibility to the insurer.
Protects your customers
Having proper insurance gives a picture of well-run business to your clients. Potential customers are more likely to consider a company with liability insurance as they consider it as a dependable business if something goes wrong. Commercial general liability insurance policy is the way to reassure your customers that they are protected as it gives them confidence and puts their mind at ease.
Helps in Enhancing client base
None of the business today is free from risk. Hence, clients expect the business to be properly insured before dealing with them. Specifically for business which involves the highest degree of risk like construction business, insurance is the great saviour and can help beat the competition. Being adequately insured can attract good customers and enhance the client base.
Reputation
You can use your general liability insurance for promoting your company stating that you are licensed and insured which can give your customers an official guarantee. Especially for small business, such kind of promotions can enhance business reputation.
Peace of mind
Ahead of everything else, you need the commercial general liability insurance as a business owner to stay stress-free. Today’s business environment itself is stressful which calls for the need of safety net. General liability insurance is the priority for stress-free business operations which can help the business to grow.
Conclusion
To conclude, every business is vulnerable to liability risk regardless of its size. You cannot avoid these risk, but you can surely manage them with proper general liability insurance. A right commercial general liability insurance with adequate coverage can be your biggest asset during a critical period.