You are not required by law to purchase general liability insurance. However, many of the people you do business with will likely have general liability insurance requirements written into contracts. That means you may need a policy if you want to sign a commercial lease or a client contract. Proof of general liability coverage is also required to apply for certain professional licenses.

General liability insurance covers common risks that arise from interactions with individuals outside of your company. That includes protection against customer property damage and injuries, such as a customer slipping on a wet floor at your business. It also covers slander, copyright infringement, and other advertising injuries. Read more about what general liability insurance covers.

The amount of general liability insurance you need depends on factors such as the type and size of your business, number of employees, and the type of customers you typically work with. However, many small businesses opt for the standard $1 million / $2 million general liability policy. This means the policy will pay up to $1 million to cover any one claim, with a $2 million limit for the lifetime of the policy, which is typically one year.

General liabilty insurance for contractors provides protection when a customer or client holds you liable for an injury or property damage. Your clients may require you to obtain this coverage before entering into a contract. Certain industries, such as construction, require independent contractors to carry general liability insurance. Even when it’s not required, an independent contractor might purchase this coverage to safeguard against common lawsuits.

Examples of general liability claims include:

• A customer slips in a spill at your business, breaks a wrist, and sues to recoup medical expenses.
• An employee drops a customer’s smartphone and it shatters. The customer sues for damages.
• An employee makes disparaging remarks about a competitor, who sues for slander.

Correct. Think of it this way: If you could suffer a loss then you need insurance. It doesn’t matter if you’re on day 1 of business or day 1000…you need the insurance.

Yes. In most cases you’ll only be insured and reimbursed for up to $2,500 of damage or loss to business assets that occurr within a homeowner’s insurance policy. It is best to purchase additional insurance and protection under your home coverage or add on a commercial property insurance policy to cover anything over the $2,500 amount.

Every policy and insurance premium is based upon the amount of risk involved. Show high risk and you’ll pay more. Mitigate that risk and you’ll pay less. Here are some simple steps you can take to mitigate the risk and lower the premium on your commercial insurance policy:

• Have a well-lighted work place (in and out).
• Keep electrical systems maintained.
• Install adequate sprinkler and fire safety systems.
• Teach and preach on the job safety to every employee and keep records of safety training.
• Keep the minimal amount of cash needed on hand. Make daily or twice daily bank deposits.

Supplemental liability is coverage that pays for legal liability for bodily injury, property damage and personal injury liability claims that occur while you are rendering your professional services. Limits of $1,000,000 per occurrence/$3,000,000 aggregate or $1,000,000 per occurrence/$5,000,000 aggregate are available.

Worker’s Compensation helps protect businesses and their employees from financial loss when an employee is hurt on the job or gets sick from a work-related cause. Workers’ compensation is also known as workman’s comp, workman’s compensation, and workers’ comp. These terms all mean the same thing and help protect workers from potentially devastating costs of work-related injuries. It also helps protect employers from potential damages that could cripple a business based on workers’ comp claims. Learn more about what is worker’s compensation insurance.

Another frequently asked question includes the coverage of workers’ compensation insurance. The Hartford’s workers’ compensation insurance helps cover medical expenses, lost wages, ongoing care costs, as well as funeral expenses if an employee is hurt, becomes sick, or dies as a result of a work-related accident or illness.

If an employee is injured on the job, they should report the injury to their supervisor immediately. When the injury is reported, the report should include the date, time, and circumstances of the injury. Each state has different requirements about when an injury should be reported, but it’s always best to report the injury as soon as it happens.

Job-related illnesses that worsen over time should be reported as soon as a diagnosis has been obtained by the employee or as soon as they learn the injury or illness is related to their job.

• Injuries received by a fight that an employee started
• Injuries an employee sustains due to being intoxicated in the workplace
• Injuries an employee gets intentionally
• Emotional injuries that are not accompanied by a physical workplace trauma