Top 5 Small Business Liability Exposures

Running a small business comes with its share of challenges, and navigating liabilities is among the most crucial. From slip-and-fall accidents to property damage claims, small businesses are vulnerable to various risks that can jeopardize their financial stability and reputation. However, commercial general liability insurance, also known simply as general liability insurance, can provide essential protection against these situations. 

Five Ways Commercial General Liability Insurance Can Protect Policyholders

General liability insurance lives up to its name by providing versatile coverage and financial assistance in response to many common incidents and risks that may transcend industry lines or unique circumstances. In many cases, the following five liabilities can trigger a business’s general liability insurance policy and qualify for financial aid:

1. On-site bodily injuries—Accidents happen, and if a customer or visitor suffers bodily injury on your business premises, you could be held liable for medical expenses, lost wages, and even legal fees. Whether it’s a slip on a wet floor or a fall caused by uneven pavement, commercial general liability insurance can cover the costs associated with third-party bodily injury claims, protecting your business from potentially crippling financial losses.
2. Third-party property damage—Small businesses may inadvertently cause damage to third-party property, whether it’s a contractor accidentally damaging a client’s home during renovations or a delivery driver causing a collision. Repairing or replacing damaged property without proper insurance coverage could drain your business’s resources. General liability insurance may step in to cover these expenses, shielding your business from significant financial strain.
3. Product liability issues—If your business manufactures, distributes or sells products, you risk product liability claims resulting from defects, contamination or inadequate warnings. Even the most diligent businesses can encounter product-related issues, leading to lawsuits and hefty settlements. General liability insurance policies typically include product liability coverage and can provide coverage for legal defense costs, settlements and judgments arising from related claims.
4. Advertising injuries—In today’s digital age, businesses rely heavily on advertising and marketing to promote their products and services. However, advertising can sometimes lead to claims of copyright infringement or misleading statements, resulting in costly legal battles and potentially sizable financial consequences. Fortunately, general liability insurance includes coverage for these claims, protecting your business against financial losses from allegations of wrongful advertising practices.
5. Personal injuries—Businesses must also account for the risk of liability claims related to personal injuries, such as defamation, slander or invasion of privacy. For example, a disgruntled former employee or competing business may allege defamation against your business, potentially triggering lawsuits. Your general liability coverage may shield your business from resulting expenses and losses.

We’re Here to Help

With extensive experience serving the coverage needs of small businesses, the dedicated team at Ayala Insurance Services is more than capable of helping you understand the importance of commercial general liability coverage. Our team will work with you to ensure you have a policy that provides ample protection for your finances and future. Contact us today to learn more.

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.