Tennessee Commercial General Liability Insurance can help protect you and your business against many common lawsuits. General liability insurance is the most popular option for many businesses because of its broad spectrum of coverage. Much like other liability insurance, commercial general liability coverage protects your business from many common claims that many small businesses can face.

What does general liability insurance protect against?

Commercial liability coverage protects your business against four basic claim categories:

• Bodily injury: If a customer or other party suffers from bodily injury caused directly or indirectly by your business, this insurance will help cover medical expenses and other damages brought about by a lawsuit.

• Property damage: If you or your employees cause damage to a person’s property (e.g., cars, homes, land, and other property of relative value), you can be held responsible for the cost. General liability insurance provides the type and the amount of coverage you need.

• Personal injury: Personal injury encompasses slander, libel, lost wages, mental anguish, and other claims that do not fall under bodily injury.

• Advertising injury: This is similar to personal injury in that it is brought about by slander, libel, or copyright infringement, but advertising injury involves another business instead of an individual.

Why do you need general liability coverage?

General liability insurance protects your business. Even if you think your business is too small or you are certain you will not cause any of the damages or injury listed above, you should still be covered. In such a litigious environment, you need to be protected against frivolous lawsuits.

Some people see an opportunity to take advantage of unsuspecting small business owners who may not be covered against a claim. For example, imagine that you run a commercial cleaning business and you do most of your work after business hours when the office buildings are empty. You may consider yourself at low-risk and don’t see the necessity of having commercial general liability insurance because you rarely, if ever, interact with your customers. But what if one of your employees damages expensive computer equipment by accidentally spilling cleaning fluid on it? You would be liable for the damages.

Remember that you can never be completely in control of every situation. Accidents happen. There are always unforeseen problems that could result in a lawsuit, including bogus claims. Your commercial general liability insurance can help cover those claims. If you don’t have many assets (or even if you do), your company could be completely destroyed by one claim against your business.

How much commercial liability coverage does your business need?

The amount of coverage will depend on your specific needs. You may only need a small amount of commercial liability insurance to cover the cost of potential claims brought against you. It is important to keep in mind that the cost of claims today has increased and people are seeking larger amounts for damages, making the right amount of coverage critical to protect your business interests. Consult with a trusted insurance broker who has your best interests in mind and will provide recommendations for obtaining the perfect coverage for your business.