Who Needs General Liability Insurance?

Unexpected losses occur more frequently than many business owners realize. According to a report by The Hartford, 40% of small businesses will experience a claim in the next 10 years. Common claims include theft, burglary, customer injuries and property damage. When a lawsuit is involved, a general liability claim costs an average of $75,000 to defend and settle, according to The Hartford.

General liability insurance can provide financial protection from these losses. Contact Clearwater Partners for more information on our general liability insurance policies.

What Is General Liability Insurance?

General liability insurance is a crucial aspect of risk management for any business. It is a binding contract in which insurance companies agree to pay for covered losses, up to policy limits, in exchange for premium payments. This coverage may also be called commercial general liability insurance.

What Does General Liability Insurance Cover?

A general liability insurance can help pay for losses that arise from allegations that your business caused third-party harm. Policy terms may vary among insurers.

The following list contains common general liability insurance coverages:

• Personal and advertising injury can help cover costs if your business is held legally responsible for using stolen advertising ideas, causing personal injury (e.g., slander, defamation) or publishing false or misleading statements.
• Bodily injury can help pay for expenses, such as lost wages or medical bills, if your business is accused of causing bodily injury to a third party.
• Medical payments can help pay for medical expenses incurred by non-employees injured because of your business or at your business premises.
• Property damage can help pay for repairs or replacements if your business operations result in third-party property damage.

Is General Liability Insurance Required in Florida?

As of March 2, 2023, state law didn’t require Florida businesses to carry general liability insurance. However, if you rent or lease the building your business operates out of, your landlord may require it. Sometimes customers, clients, business partners or investors will also consider general liability insurance a requisite to doing business.

Even when general liability insurance isn’t required, it’s recommended. Without a general liability policy, you must pay out-of-pocket for claims or suits arising from liability claims.

Getting General Liability Coverage

We’re here to help you find the coverage your business needs. Contact Clearwater Partners in Tampa, Florida, to learn more about our general liability insurance policies and to get an insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.