General Liability Insurance Charlotte NC
Like many other insurance plans, the general business liability insurance policy will establish the maximum amount of money the insurer will pay in case of a liability claim. For example, if one of your employees is injured at work, sues you for $250,000 representing the medical care costs associated with worksite injury, and the legal fees reach the additional amount of $100,000, your maximum coverage should be of at least $300,000, otherwise, you will have to pay the difference yourself.
If your business involves higher risks, you can add umbrella insurance or excess insurance to your general liability insurance policy, in order to increase your coverage. Your insurer should be willing to work with you on finding the best solution for your business, no matter if that means preparing several offers for you, reviewing the terms of several types of insurance or answering a long list of questions.
It is important to do your research and know your options very well before you sign any contract, because the insurance policy you buy may affect your business. Indeed, there are some clients who will not allow you to represent them or perform any type of work on their behalf if you do not have the minimum general liability insurance coverage, and it would be a pity to lose business because of a bad decision.
What Is General Liability Insurance and How Does It Work?
If you are just starting your first business in North Carolina, make sure you take into account the costs of general liability insurance when you plan your budget. Also known under the name of Commercial General Business Liability, this type of insurance is meant to protect your company assets and pay for obligations like, for example, the medical costs incurred when someone is injured on your property and any property damages or injuries you and your employees may cause.
The fees of the lawyer defending you in court and eventual settlements will also be covered, as well as damage compensation, nonmonetary losses incurred by the party injured or punitive damages. With general liability insurance, you will also be protected if you damage a rented property, as its tenant, in case of fire or flooding, for example. Finally, you will also be covered in case of claims regarding misleading or false advertising, like slander, label or copyright infringement.
Do You Really Need Liability Insurance for Your Business?
You can never know when someone decides to sue you. Even if you think they are unlikely to win, you will sleep better knowing that you are covered, especially since the annual premiums are not that high. They usually range between $750 and $2,000, according to your coverage needs and to the specific of your business. That is certainly preferable to paying settlements of thousands or millions of dollars or to defending yourself in court.
You can purchase general liability insurance on its own or together with property insurance, within a Business Owner Policy. If you already have a Business Owner Policy, you should find out what the limit of your liability coverage is. If you consider that it is too low, you can increase it or get a new liability policy for additional coverage.
How to Assess Your Coverage Needs
Liability coverage needs usually vary according to the specific of your business and the associated risks. That is why business consultants and web designers need lower coverage than building contractors, for example. The best way to assess your coverage needs is to discuss directly with the insurer. You should discuss with several before making a choice, so that you can compare their offers and the professionalism of their personnel. Before you make any inquiries or sign any documents, make sure they are licensed or authorized by the Agent Services Division of the North Carolina Department of Insurance.