One of the first steps you should take when starting a small business is to schedule an appointment with your local insurance agent. Why? Because you need commercial insurance, specifically general liability insurance. Certain industries, however require more coverage than others. This is especially true if the work you do is a little on the risky side.
How do you determine the right amount of coverage for your operations? Here are the top five industries that need general liability insurance coverage.
#1: General or Repair Contractors
Job sites can be a dangerous place and sometimes even the most preventable accidents can happen. Whether your company handles new construction, renovation or repairs, you need a general liability insurance policy as an added backup to protect your assets. If someone gets hurt on your property, you'll likely be able to handle any coverage of their losses. That can be a huge financial challenge to any business.
#2: Real Estate Agents
In contrast to contractors, real estate agents typically need a general liability policy for reasons other than physical injury. Instead, they often need coverage to protect against personal and advertising injury claims. If a former client or a competitor claims your marketing materials caused them harm in any manner, your policy might be able to help you fight these claims in court. Liability insurance can also cover you if you were to cause damage to someone else’s property while on the premises.
#3: Retail Stores
Owning a retail store has tons of benefits. However, an innocent situation where a customer trips and falls while at your location, or claims your employees damaged their personal property, can have serious ramifications on your business. A general liability policy can help with these types of unfortunate situations. However, you still must do all you can to prevent slip-and-fall injuries in your business in the first place.
Like retail stores, restaurants need general liability insurance protection. This type of policy can assist if a client becomes injured while at your location or feels the food you prepared made them ill. If they choose to file a lawsuit, then your benefits will be there to support you.
#5: Consultants and Independent Contractors
Unfortunately, many consultants don’t realize that they need general liability insurance coverage. The truth is that independent contractors—including marketers, graphic designers and IT professionals—are just as liable for their actions as any of the industries mentioned above.
Of course, these are just a few of the many different small business industries that need a general liability insurance policy. Nearly every industry needs to have one in some shape or form, after all. Still, liability claims can take on many forms. So, it is important to discuss your situation with an insurance agent directly. Contact your local office today for more details.