You already know that you need to protect your business by having the right amount of liability insurance coverage. What you might not know is why this is highly beneficial for the growth of your company. Here are the top five benefits of having general liability insurance.
Benefit #1: Protection Against the Unexpected
Let’s look at the most obvious benefit of having general liability coverage. It protects you against the unexpected.
You might think you have control over every aspect of operations, but accidents happen. By making sure you have adequate coverage, you can rest easy knowing you have protection of in the event of an unfortunate incident.
Benefit #2: You Could Close More Large Contracts
If you regularly place bids for large contracts, having a general liability insurance policy in force could help you close more contracts. The reason for this is that many firms require you to have coverage before bidding on or closing a deal. By having your policy already in force, you’re one step ahead of the competition.
Benefit #3: You Might Be Covered Against a Data Breach
Data security is incredibly important. If your company regularly keeps customer information including names, addresses, and social security data, having a general liability insurance policy is a must. Many policies now include a provision for electronic data liability, which could protect your company in the event of a hacking situation. Keep in mind, if your general liability coverage does not apply to these situations, you might have recourse. Another type of liability insurance, called cyber liability coverage, might help.
Benefit #4: You Don’t Have to Fear Injury Claims
If you regularly meet face-to-face with clients—either at your location or theirs—the chance of an injury claim increases. Instead of being fearful, you have the option to know you have protection by your general liability insurance policy.
Benefit #5: Protection Against Employee or Staff Actions
There’s an old saying about it being hard to find good help. While you likely try to keep the best staff possible, it is sometimes hard to guard against employee or staff actions. This includes things as simple as slander or something as serious as an incident with property damage or injuries. In certain cases, these types of claims brought on by third-parties could have coverage on your general liability insurance policy. However, sometimes you might need to add a special provision, or even separate policy, called personal liability coverage.
While having a general liability policy isn’t a legal requirement in most states, it is still a good idea to have. These five benefits are really just the jumping off point of why your firm should invest in one.
Also Read: Cyber Liability: Complying with HIPAA Regulations