General Liability insurance helps protect your business from things that happen to people other than your employees (clients, guests, etc). Depending on what you do, it covers things like people slipping and falling at your business location, getting sick from something you served them, or harm caused by your company. Basically, it protects your company from being sued to bankruptcy.
Litigation can be messy and is almost always expensive, so liability insurance will help you sleep at night.
Do I need to have general liability insurance?
Virtually every type of business needs some kind of liability insurance coverage (in fact, it’s often the first insurance coverage purchased for a new business).
It would be fairly reckless to operate without it.
Many times, clients or property managers require you to carry general liability insurance so they feel reassured that everything will be ok in the case of an accident, property damage, or a lawsuit.
What does general liability insurance cover?
Make sure you check your policy for details, but typically your General Liability insurance will cover:
Property damage: Expenses to repair client property that was damaged as a result of your work.
Injury: Medical and legal expenses related to injuries experienced by third party (excluding your employees; you want to cover your employees for work-related injury or illness).
Products: Legal expenses associated with your product (eg: somebody sues you because your product caused them harm).
Defamation: Legal expenses associated with libel, slander or copyright infringement.