What you need to know about securing this important commercial coverage for your business.
If you want to start your own business, you may be wondering about your commercial insurance requirements. Well, aside from workers compensation insurance, businesses are not legally required to carry most forms of commercial coverage. However, this does not mean that you can afford to skip out on important types of business insurance in Lancaster, California, such as general liability insurance. Here’s what you need to know about protecting your business with the right general liability insurance.
- What is General Liability Insurance?
General liability insurance provides financial protection for your business in the event that a customer, vendor, or a third-party sues you for bodily injuries or property damage. This coverage pays for the affected party’s medical treatment and/or property repairs or replacements. Additionally, your policy will cover the cost of defending your business in court.
- Who Needs General Liability Insurance?
General liability insurance is a type of commercial coverage that all businesses should carry. This is because all businesses, regardless of size and industry, face liability risks. Because even a seemingly minor liability issue can turn into a lawsuit costing hundreds of thousands of dollars, businesses cannot afford to skip out on this coverage.
- Is General Liability Insurance Mandatory?
Typically, business owners are not legally required to carry general liability insurance. However, there are some exceptions to this rule. For instance, professionals in certain industries may be required to show proof of general liability insurance when applying for professional licenses. Real estate agents, dentists, and accountants usually need to meet general liability coverage requirements before they can secure the licenses they need to practice in the United States. Oftentimes, businesses also need to show proof of general liability insurance before signing contracts with larger companies, leasing an office, or closing deals with clients.
This is what you need to know about general liability insurance. Do you have additional questions about your business insurance in Lancaster, California? If so, then contact the experts at John E. Peakes Insurance Agency. We are ready to assist you with all your homeowners insurance needs today.