General Liability Insurance in PA : All You Need to Know

Having your own business is already a tough challenge by itself, but the stress does not just end on the operations and the expenses that come with it because there are so many other risks. Some potential hazards that you may encounter may come in the form of claims or lawsuits, and this is something that you would certainly like to avoid because it could mean some substantial extra costs for you.

Fortunately, there is a way to prevent you from experiencing this kind of liability and protect your business. This is done by getting general liability insurance that comes with the proper coverage. Business owners who are operating their companies in Pennsylvania should be aware of the PA general liability insurance laws that are followed in the state to be sure that their small businesses are complying with all the requirements because if they are not, they can suffer some hard consequences such as the removal of their business license or they may need to pay some huge amounts.

What is General Liability Insurance?

This type of liability insurance PA was mainly designed to protect your business in the event that lawsuits or claims occur. Insurance for general liability is also known as commercial liability insurance or is also coined as small business liability insurance. 

Business owners should prioritize this kind of insurance coverage as it safeguards their business from claims made by either their clients or visitors or anyone coming into their property and getting injured while at your place of business.

Surely, we cannot always guarantee everything to be secure no matter how we keep our property safe for all the guests visiting our commercial space. This is the primary reason why small businesses must have liability insurance general. Part of this business insurance coverage is a personal injury, bodily injury, and property damage.

When a non-employee goes into your commercial property and gets injured, general liability insurance covers the necessary medical expenses. For example, if you or your employee accidentally damages other business’ or people’s property, the needed replacement or repair is also covered by this liability insurance. 

Another coverage of this business insurance is the cost that may be incurred in case you or your employee damages another person’s rights or reputation because of either what you wrote or what you said against the other person.

When Should Business Owners Get a General Liability Insurance?

A small business owner should know that legal risks come with a Pennsylvania business. Whatever happens inside your commercial property, you will always be the one to bear the responsibility. So how then should you know whether your small business requires this kind of business insurance?

  1. Suppose other people, such as clients or other guests, go to your commercial property. In that case, there is always that chance of a bodily injury or accident taking place and may need medical attention; the general liability insurance covers expenses for this.
  2. Suppose your Pennsylvania business is doing some marketing campaigns, and you unintentionally used trademarked, or copyrighted words, and a claim happens. In that case, this is also a part of your liability insurance coverage.
  3. Suppose you are able to hold a client’s property physically, and you accidentally cause some property damage to it. In that case, this business insurance covers the cost to either repair or replace the item.
  4. Suppose the nature of your Pennsylvania business involves moving to different locations. In that case, you are still the one accountable for any injury or accident that may happen to anyone present on the site. Any medical expense needed for this is also part of the insurance coverage.
  5. Some business owners may need you to have general liability insurance coverage before working on a commercial project with you.

What is the Coverage of a General Liability Insurance?

A generals insurance protects your business from so many incidences that include: medical costs, someone else’s property damage, bodily injury such as a physical injury, advertising damage, legal fees, personal injuries such as false arrest, libel, invasion of privacy, copyright infringement, damage on another person’s reputation, and other incidences similar to the ones mentioned that are caused by you or your employees.

This kind of liability insurance PA, though it offers you so much protection, does not save your business from everything, which is why you need to combine it with other types of business insurances like professional liability insurance, property insurance and others that can protect your small business from potential risks. Talking to a trustworthy insurance agent to help you find the most suitable business insurance for your industry is the best thing to do.

What is not part of a general liability insurance coverage is the use of commercial autos like boats and other commercial vehicles, your own employee’s injury, and professional services. That is why you need professional liability insurance, your property, and the need for property insurance, among others.

How Much Does It Cost?

A small business is defined as a business having less than 500 staff. Though it is not required for all types of companies, you must still give it some careful thought and priority as it can save your business from losing money in case of lawsuits or claims from clients due to an injury.

How much your business insurance will cost and what would be part of its coverage all depends on so many factors, including your business size, the industry you belong to, the location of your business, the kind of products you have, etc. Typically, general liability insurance in PA costs about $500,000 to $1Million, but this changes when your business is considered high risks like when your commercial enterprise involves a lot of public interaction such as a retail space or a restaurant. If you are in this commercial entity, you may need to increase your overall liability capacity.

Premiums for your business insurance are evaluated according to the following factors: number of years in business, kind of products and services that you offer, number of staff that you have, and history of your claims. On average, companies pay around $300 to $5,000 per year or about $42 per month for a general liability PA. Though it may seem like an additional cost, it is definitely worth paying because it can save you from more significant headaches in case of untoward situations with your clients or guests in the future.

Getting business insurance like the general liability insurance is not something that you want to go cheap on because getting a higher cap would also mean having a considerable amount of payoff when the situation arises. This will protect you from getting money out of your pocket. If you only get a conservative amount, you might need to pay for the extra fees from your budget, and nobody certainly wants that.

Before you even start with your operations, you must consider getting general liability insurance first so your assets will be protected. It is best that you reach out to an insurance agent that you know very well so that he or she can lead you to the most suitable insurance for your enterprise, and can offer you what you need. You also need to be aware that your risk level should match your liability insurance coverage.

Remember that general liability insurance does not cover your damages. Still, a third party’s so to protect your assets like your commercial auto and others; you would need a different kind of insurance for those. This also goes for your own employees’ protection, and you would need to give them a worker’s compensation insurance as well. General liability insurance is tax-deductible; this is something that may interest you.

Suppose you are wondering who should purchase general liability insurance. In that case, they are: IT contractors, those in the janitorial services, real estate agents, those in marketing or consulting, artisan contractors, small business owners, those in the landscaping industry, and the list goes on.

Whether your industry is mandated to have general insurance or not, it is still recommended that you get one for your business and your employees so that every component of your enterprise can be protected from unforeseen circumstances in the future and that you will be saved from untoward risks most especially the ones dealing with the legal. You may just thank yourself later on for doing this