It’s not an uncommon occurrence in our office to get a call asking for general liability. It’s also not uncommon that the person requesting it doesn’t know why or for what purpose they are about to purchase this product. They only know that someone wants a certificate with certain limits. It sounds easy enough, right? I’m often surprised how many people don’t truly understand what they’re buying, but when it’s your neck on the line, it’s definitely important to have the basic understanding.
Liability (also known as commercial general business liability) protects a company’s assets and pays for potential damages caused whether that be medical costs that may have incurred if someone gets hurt on your property or when there are property damages or injuries caused by you or your employees. Liability insurance will also cover the cost of your legal defense and any settlement or award should you be successfully sued. It could possibly include compensatory damages, non-monetary losses suffered by the injured party, and punitive damages. Your general liability insurance can also protect you against any liability if you cause harm to a property that you rent. Finally, it can also protect against claims due to misleading advertising, including libel, slander, and copyright infringement.
The coverage depends on the type of business you participate in and the risk perceived with it. If you’re a roofer that stands on three story buildings all day, your premium might be more than the guy who runs an office. No matter what profession, we live in a litigious society and even if you think you’re safe you’ll face a claim. Insurance is a wise investment that could potentially not cost as much as you think. Minimum premiums can start around $500 and that’s for 12 months of coverage. That’s certainly a lot less than the thousands, if not millions, of dollars you may need to spend fighting your case in court.
Some people look at paying for commercial insurance as one more thing, but when you look at the benefits it has and if an issue were to ever arise, it’s nice to know you could be protected. If you have questions regarding your Oklahoma City general liability insurance, ECI is always here. If you have more questions, check out our blog for useful tips.