Texas is the 10th largest economy in the world, and small businesses play a significant role in making it an economic leader. In fact, roughly 3 million small businesses in Texas account for more than 97% of the state's companies and nearly 50% of its employees.
In an ideal world, business owners in Texas would have nothing to worry about. In reality, however, we inhabit a world filled with dangers, accidents, and other unfavorable occurrences that happen regularly. A customer sustaining an injury within a store's premises, an employee accidentally harming client property, or a small business seeking insurance because it allegedly failed to provide a service successfully — these are just a few of the dangers that businesses confront every day.
Commercial general liability insurance coverage is an absolute necessity in light of the vast number of potential risks.
Texas is the only state where business insurance is not required by law. However, it is typical for several state agencies and clients to require coverage prior to working with you. In addition, if you do not have insurance, you may be required to pay for expenses when an accident or injury happens out of pocket.
You can select coverage types and restrictions based on various factors, including your:
To determine if additional insurance coverages are necessary, you must comprehend what general liability business insurance covers. Certain situations are excluded from the general liability policy. Here are the circumstances where your business's general liability insurance provides enough coverage:
|Property Damage Or Bodily Injury||This policy covers bodily injury and property damage claims arising from accidents on your property or products, company operations, or advertising. If a customer slips and falls in your store or a third party's work cause accidental property damage, your business will be protected by general liability insurance.|
It is vital to clarify that this only applies to injuries sustained by non-employees.
|Medical Payments||Medical payment coverage can compensate for minor injuries sustained by non-employees on your property. Typically, it will cover medical and funeral expenses for which your company may be held liable. It is important to realize that the insurance will only pay up to the limitations of your policy.|
For instance, if a customer is wounded at your place of business and incurs $10,000 in medical bills, your insurance policy will cover these costs up to a specified level. If your limit does not exceed $5,000, you are responsible for the remaining costs.
|Personal & Advertising Injury||This protects you in the case that your company's marketing infringes on someone's copyright or offends them, and they believe you are responsible for any damages you may or may not have caused. Your general liability insurance may cover written or verbal communications that constitute libel, malicious mischief, slander, or copyright infringement, among others.|
|Defense Costs||This aspect of your general liability insurance covers the cost of a legal issue if you are sued or have filed a claim for damages against you. The insurance protects your business by covering the insurance company's investigation and legal fees, any judgment or settlement, medical expenses in the event of injury, and bonds if they must be paid subsequently.|
Your general liability insurance costs can range from a few hundred dollars to a few thousand dollars a year, depending on a number of factors. Your type of business is a big factor.
For instance, construction companies are more likely to get higher insurance quotes and pay higher rates than consulting companies. Other things that can affect how much your liability insurance costs are:
Getting insurance quotes is the best way to determine how much your commercial general liability insurance will cost. Additionally, you can change your policy so that it fits your needs. Find out how liability insurance can protect your business by getting a quote today.