General liability insurance guards you and your business against general claims like property damage and bodily injuries arising from the business’s operations, services, or products. Every business requires general liability insurance as it can pay for the attorney fees stemming from property damage or bodily injuries for which the company may be legally accountable. That said, the insurance will not cover auto accidents, employee injuries or illnesses, professional mistakes, or intentional acts.

Here’s why you should have general liability insurance:

• Shows business maturity
  As a business owner, you ought to show your customers that you are trustworthy and responsible. Having general liability insurance gives the impression that you are aware of the plausible risks that your company may encounter as part of its routine business operations. Additionally, depending on your business operations, your clients might also demand that you have general liability insurance before deciding to associate with you, and having it lowers your chances of losing clients. Overall, having general liability insurance in place determines that you are proactive in keeping your business and employees safe.
• Offers third-party bodily protection
  Imagine a situation wherein a client or guest visits your company and slips on a wet floor. This can put you at risk of severe financial damage, but a general liability insurance policy will cover these bodily injuries experienced by the third party on your premises.
• Provides coverage against data loss
  Data security is vital for a business. If your business regularly maintains customer information like names, addresses, social security data, and phone numbers, then it is necessary for you to have general liability insurance. While you need cyber liability insurance for better protection against losses due to data breach, several insurance policies offer coverage for electronic data liability. That said, it can come in handy only in the case of data loss due to physical damage. So, before you purchase general liability insurance, ensure that the policy covers electronic data security. If not, cyber liability coverage may come in handy.
• Covers staff or employee actions
  Of course, you exercise due caution and diligence while hiring your employees or business staff, but they might bring damage to your business at times. And it is impossible to shield against their actions in some cases, like defamation or even severe incidents involving injuries or property damage. A general liability insurance policy will also offer adequate cover for malicious prosecution, copyright infringement, or libel.
  Some general liability insurance policies also cover the claims inflicted by acts of a third party, but you may need a supplementary provision or a policy known as personal liability coverage in other cases.
• Shows that you’re in it for the long term
  When you guard your livelihood via a commercial general liability insurance policy, it indicates that you intend to be in the market for a long time. Present and prospective clients and others will comprehend this as your unwillingness to risk a claim that may not be in the best interest of your business. Consequently, their faith in you increases, and when your client loves your service or product and also has faith in you, the chances of them recommending your business to others are significantly higher.
• Offers financial loss coverage
  Liability claims can often come up during regular business operations, and they can prove to be expensive for small businesses to cover. When you have a general liability insurance policy in place, it ensures that you can move ahead without incurring any financial loss. This policy will, essentially, guard you against monetary losses and guarantee a safe future for your business, even if you experience a temporary setback.