What is General Liability Insurance?
Imagine general liability insurance as a sturdy, reliable umbrella that keeps your small business safe from a sudden storm of risks. It’s like your personal superhero, protecting you from different disasters like someone getting hurt, property damage, or even problems due to advertising mistakes. But it’s more than just another layer of protection – it’s the solid foundation your business’s safety is built on. It’s your steadfast protector from sudden problems that could seriously hurt your finances.
How Does General Liability Business Insurance Work?
So, what is general liability insurance? It’s like a safety net for your business, providing the essential protection and peace of mind to run your daily operations without fretting about the financial impact of accidents, injuries, or lawsuits.
What Does General Liability Insurance Cover?
Think of general liability insurance as a big safety net for your business. It takes care of three main areas:
Bodily Injury
If someone, like a customer or supplier, gets hurt because of your business, this part of your general liability insurance coverage comes into play. Let’s say after a massage, a customer slips on a wet floor in your massage parlor or feels a strain in their neck. This part of your insurance covers things like their medical bills, any legal charges if they sue, and any money you might have to pay them in a settlement.
Property Damage
If your business accidentally damages someone else’s stuff, this is where your general liability business insurance steps in. Say you’re a hair stylist who makes house calls. You may accidentally leave the hot iron on too long and damage the table it was resting on. Or, wind knocks over your welcome sign at the salon and it nicks your customer’s car. This part of your insurance will take care of the cost to fix or replace the broken item.
Advertising Injury
Advertising is a big part of growing your business, especially online. But it comes with risks. If someone claims that you’ve copied their work, said something damaging about them, or invaded their privacy, this part of your general liability insurance for small business is there to cover any costs that might come up because of these issues.
If you want to dig deeper into what general liability insurance covers, you can check out this useful article by Forbes Advisor.
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Who Needs General Liability Insurance?
Think of general liability insurance as your business’s secret safety tool. It doesn’t matter what industry you’re in or how big your business is, this insurance acts like a shield, protecting you from any financial trouble that might come up because of accidents or claims.
Most beauty professionals need or are required to have general liability insurance. If you’re renting a booth, it’s likely that the building owner will require it. If you work for yourself, you’ll want to protect your funds. If you’re a salon and spa owner, you’ll want to make sure every person working under you is protected, just in case.
All beauty and bodywork professionals should look to have general liability insurance. Some of the most popular services that are covered include:
How Much Does It Cost?
How to Purchase General Liability Insurance
Getting general liability business insurance with BBI is as easy as taking a stroll. Our expert team is here to help guide you through the process. We start by learning all about your business – its size, what it does, and what kind of risks it might face. This lets us suggest the best insurance options for you. We’ll explain all your choices, answer any questions you have, and make sure you’re happy with the decision you make.
We don’t want getting insurance to feel like a chore. Our aim at BBI is to make it clear, easy to understand, and even a bit reassuring. We’re here to help protect your business, so you can concentrate on making it grow.
General and Professional Liability Limits
The most your policy will pay in a 12 month policy period for bodily injury and property damage claims that you become legally obligated to pay due to your business and professional services.
$3,000,000
The maximum amount your policy will pay in a 12-month period for bodily injury and property damage claims that result from the products you use to perform your services. However, it does not cover products that are sold or distributed.
$3,000,000
The amount that your policy will pay for claims arising out of one or more of the following offenses:
-False Arrest, detention or imprisonment
-Malicious prosecution
-Wrongful Eviction or Wrongful Entry
-Oral or written publications that slander or libels a person or organization
-Oral or written publication or material that violates a person’s right of privacy
-The use of another’s advertising idea in your advertisement
Included
The maximum the insurance carrier will pay for a bodily injury or property damage claim that you become legally obligated to pay due to your business and professional services.
$2,000,000
Applies to damage by fire to premises rented to the insured and to damage regardless of cause to premises (including contents) occupied by the insured for 7 days or less.
$300,000
A general liability coverage that reimburses others, without regard to the insured’s liability, for medical or funeral expenses incurred by such persons as a result of bodily injury or death sustained by accident under the conditions specified in the policy.
Any One Person: $5,000
i. Please note these are brief definitions of coverage. Your policy may be more restrictive in its language. Refer to the actual policy for a complete description of coverages and exclusions. If you would like to see a sample policy, please contact us.
More General Liability Questions
Is General Liability Insurance Required by Law?
While general liability insurance might not be required by law everywhere, there are times when you’ll need to have it. Some states, industries, or even certain contracts might require businesses to have this kind of insurance. For example, if you’re renting a commercial space, your landlord might require you to have general liability insurance coverage.
But it’s not just about following the rules. Having general liability insurance for small businesses is also a smart move for your business. If your business deals with the public in any way, it serves as a safety net, protecting you from any unexpected incidents. So, what is general liability insurance? It’s an important tool that helps you manage risks and protects your business from unexpected claims or legal issues.
What Other Types of Business Insurance Do I Need?
Your insurance needs are dependent on what you plan on offering. Some beauty professionals just need basic general liability coverage to check the box for their job. However, there’s a chance the services you provide might require more.
For instance, if you offer professional advice or services, professional liability insurance is a must. It could be as simple as you telling a client what hair dye to use once they get home. Also known as errors and omissions (E&O) insurance, it acts as your company’s shield, protecting you from claims triggered by professional blunders, oversights, or the inability to deliver on promised services. This coverage is included in BBI’s base policy.
As a beauty professional, your tools help you do your job to the best of your ability. Things like massage tables, pedicure chairs, hair dryers, and more getting damaged could dig into your profits. If you want to protect your tools, you might want to add Tools & Supply coverage to your policy. Also known as Inland Marine insurance, this coverage protects your tools, supplies, and inventory if they are damaged or lost.
Another option you have is commercial property insurance. Think of it as a robust guard against any damage to your business property—be it owned or leased—might suffer from events like fires, theft, or natural calamities. This insurance doesn’t just cover your physical structure but extends its protective embrace to the assets within.
And let’s not forget about workers’ compensation insurance. If you have employees on your payroll, this type of insurance is not just crucial—it’s mandatory in most states. Should an employee fall ill or get injured due to work-related activities, workers’ comp coverage kicks in, taking care of medical costs and compensating for a part of the lost wages.
In order to map out the landscape of additional insurance policies you might need to supplement your general liability insurance coverage, a clear understanding of your business’s specific needs and inherent risks is paramount. BBI does not offer commercial property insurance or workers compensation. But, if you want to add either coverage our partners at Insurance Canopy offer coverage. You can contact our customer service about it or visit insurancecanopy.com.
Why is General Liability Insurance Important?
The importance of general liability business insurance cannot be overstated. It is a crucial player in the field of risk management, protecting your business from potential substantial financial losses resulting from accidents, injuries, or legal disputes.
Even the smallest mishap can lead to significant expenses, especially when they result in legal proceedings. General liability insurance for small businesses is designed to shoulder these costs, providing your business with financial stability and peace of mind.
Furthermore, having general liability insurance does more than just safeguard your business’s finances. It also bolsters your business’s credibility by showing your clients, customers, and stakeholders that your business takes risk management seriously. This not only protects your business but also fosters trust and confidence in your operations.
General liability insurance is not just a policy – it is a vital tool in ensuring the financial health, reputation, and sustainability of your business.
Partner with BBI for Your General Liability Insurance Needs
BBI’s unwavering commitment to making insurance understandable positions us as a reliable partner for your insurance journey. Our service extends beyond offering extensive coverage; we also pride ourselves on our exceptional customer service. If you have any questions or concerns, or if you need guidance regarding general liability insurance coverage, our team is readily available to assist you. Secure your business with BBI because we believe every small business deserves extensive protection.
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