A very common question asked by new business owners is why they need general liability insurance. It is a great question to ask, and knowing the answer will make the decision an obvious one when you think about the risks of going without this type of coverage. California business operators, small or large, often count liability insurance as one of the most important policies they can buy to protect their financial stake in their business.
General liability is in place to cover you in the event of a lawsuit. For example, a customer may file a lawsuit if they are injured while at your business premises. Typically, the coverage may include not only payment of damages up to the limit on the policy, but also the legal costs of defending any claim. This can be a huge benefit to not only protect the assets of the business, but potentially your own as well. We live in a litigious society, and thinking you will never have anyone make a claim against you is naïve, and could be very costly.
You can, of course, take steps to limit the potential for a claim by auditing your workplace for potential hazards, such as those that could cause a customer to slip or trip over. But accidents can happen, no matter how careful you are, which is why having the right general liability insurance is vital to your business. Being realistic about the risks and possible consequences of accidents will make the decision to purchase insurance much easier to make.