Given that North Carolina is home to nearly 10 million people, it is not surprising that many of them are employed by small businesses. Small businesses account for roughly 98% of all North Carolina firms and 46% of the state's private workforce. Let us provide more information about general liability insurance in North Carolina to protect your company's income, property, and other assets.
If you own a small business in North Carolina, the following information will assist you in understanding North Carolina general liability insurance and protecting your business and personal assets from legal claims and settlements that can result in financial devastation.
Commercial liability insurance (also known as business liability insurance and commercial general liability insurance) safeguards your North Carolina business against financial loss resulting from claims of injury or damage caused by you or your workers to third parties. Typically, a policy covers:
In North Carolina, general liability insurance is not required for businesses. North Carolina is a state where contributory negligence is the exclusive legal standard. If the plaintiff is at fault in an accident, he or she cannot claim any damages. Additionally, damage awards are not capped. The statute of limitations for personal injury caused by negligence ranges from three to ten years. Six years have passed from the date of purchase. In North Carolina, accidents and lawsuits (both legitimate and frivolous) do occur. If your North Carolina small business owns property or other valuable assets, it would be prudent to invest in enough commercial general liability coverage.
As a general rule, the type of North Carolina business you operate or the goods you produce should decide the amount of North Carolina commercial general liability insurance you require. The optimal revenue range for the majority of small businesses is between $500,000 and $1 million. However, if your firm is high-risk, such as in the construction industry, or has a large volume of public engagement, such as a restaurant or retail store, you should consider expanding your coverage. Note that your homeowner's or renter's insurance has limited coverage for business liability and loss if you operate out of your house.
Here is a list of Small Businesses (SMBs) statistics for the state of North Carolina:
Here are frequently asked questions regarding general liability insurance in North Carolina:
North Carolina is a "fault" or tort-based jurisdiction, which means that if you were injured in a car accident, you can seek compensation from the driver who caused the collision, or was "at fault."
After a civil trial, the jury concludes that the other driver is 90% at blame and you are 10% at fault due to your speeding. Under North Carolina's standards on contributory negligence, you cannot collect anything from the other driver.
The police will not instantly send your insurance company the accident report. Your provider will only become aware of your accident if you or one of the other drivers involved reports it to file a claim.
Premiums for general liability insurance in North Carolina are determined by a variety of criteria, including the services or products you offer, the number of employees you have, the length of time you've been in business, and your claims history. Typically, coverage is limited to a specified financial amount during the policy period.