How Much General Liability Coverage Do You Need?

How Much General Liability Coverage Do You Need?

You know you need liability insurance to protect your company from lawsuits arising from injuries or property damage as a result of your own direct or indirect actions. But do you really have a good grasp on just how much coverage you need? Your commercial insurance package policy probably came with a base level of general liability coverage; in most cases, increasing that coverage is more than just a good idea, it is a must.

Lawsuits Are A Reality

You have probably heard about million dollar lawsuits brought against major companies by people who were injured as a result of negligence. You may even have thought some of those lawsuits were frivolous and unfounded, but the fact that you heard about them probably indicates they went to court. And if they went to court, those companies were forced to defend against them, spending a lot of money on legal fees. Do you have enough coverage to handle those legal fees, and also pay out a settlement if your day in court goes against you?

Many small businesses believe that they will not be the target of such a high dollar lawsuit because they aren’t big names. This thinking is dangerous; while some people may increase the dollar amount of their lawsuit when they know a company can pay, large lawsuits are still often brought against smaller companies. And smaller companies are the least able to absorb the loss if they are forced to fight a court battle and pay out on a settlement. Which is why these companies really do need much more liability coverage than they may believe.

Carrying Enough Coverage

General liability insurance covers you for a wide variety of potential negligence situations, and it is actually one of the less expensive coverages for most companies. When it comes to determining how much you need, the simple rule is that more is better. If the option is there to increase the coverage and it doesn’t make a large difference in your premium, you should always take it.

The cost of a liability claim can rise quickly, and if your coverage limits are met you will be left to pay any remaining costs yourself. If you have ever been involved in a lawsuit you know how expensive lawyers and court costs can be. Add to that the amount that a judge may award the claimant and you are looking at a serious financial loss. General liability insurance is the simple and affordable way to make sure this doesn’t happen; give us a call to be sure you are carrying enough, and increase it if you can. When it comes to liability, better safe than sorry is always the right way to go.

Who And What Is Covered Under Your Commercial Auto Policy

You count on a commercial auto policy to protect your business from liability risks that could be incurred when you or an employee gets behind the wheel for business purposes. In order to get the most from your commercial policy, you need know what it covers-and more importantly, what it doesn’t.

 

When you set up a commercial policy, it is important to ensure that every potential driver who might get behind the wheel is listed on your policy. As new employees join your company, you will need to contact your insurance agent and make sure they are added to the policy. If anyone who is not listed as a driver gets behind the wheel, you run the risk of being denied coverage in case of an accident. A commercial auto policy can and will protect all of the drivers in your business, but only if you are sure they have been properly added as insured drivers.

 

There are several types of commercial auto policies. Under an individual policy, a specific car owned by the business is covered for liability as well as other options you may choose. When you have a fleet policy, you will have a single policy that covers every vehicle owned by the company. Much like adding new drivers, you should be certain to add and remove vehicles as needed to keep your policy up to date.

 

A commercial insurance policy covers you for property damage and injuries to others that occur as a result of the actions of a covered driver. That means that if your employee is found to be at fault in an accident, the commercial auto policy will kick in and prevent your business from becoming the target of a lawsuit for damages. Why does this matter? Because if you don’t have the coverage you need, your business could face financial ruin. When a business is involved, lawsuits are more likely; injured parties see the likelihood of a higher financial payout. Your commercial auto policy protects you from this sort of lawsuit, providing coverage for the liability you take on when you let employees drive your vehicles.

 

A commercial auto policy also protects you from damage that can be done to the vehicles you own in the course of business use. Vehicles that are on the road more often-as many business vehicles are-are at a higher risk of being damaged. Your commercial policy protects you from errors made by your drivers, theft, vandalism, and other damage.

 

While you are careful in choosing the people you hire, everyone makes mistakes. Unfortunately, when someone is driving a vehicle owned by your company, you can be held responsible for those mistakes. Commercial auto insurance makes certain that your business won’t face a disaster due to an accident.

 

 

Keeping Your Commercial Auto Policy Affordable

Insurance is one of the big expenses of running a business. Between coverage for your premises and products, liability and worker’s comp, and the other coverage you might need specific to your company, it can add up fast. Commercial auto can be a big expense for a company with a large fleet of vehicles and drivers.

Fortunately, there are some steps you can take to keep your commercial auto policy affordable. First, take a look at what insurance companies consider when determining the rates. Much as with a personal auto policy, a commercial policy is rated based on several factors such as the type of vehicle being insured, the type and amount of use that vehicle gets, and the location where the vehicle is garaged. In addition to these factors is the driving record of the person who is being insured to drive the vehicle.

Consider what happens when you add a teenage driver to a personal auto policy: the rates go up because there is now a high risk driver using that car. When it comes to your commercial auto policy, you can keep rates under control by ensuring that your employees have good driving records-and keep them that way. Careful hiring practices for drivers in your company can avoid surprises on your insurance bill!

When you select vehicles as company cars, take into account things like the value of the vehicle, safety features, and the likelihood of theft. Cars with a high safety rating and low theft statistics will save you big on premiums. Choose vehicles that serve your needs without going overboard; luxury cars are a nice perk, but not a great choice for insurance costs.

Think about where you garage the vehicles. A safer area with a low crime rate can reduce your rates. You should also be sure to keep the vehicles secured with features like a fence or a garage if possible. The more effort you take to ensure the safety of the vehicles in your fleet, the lower your insurance rates will be. Your insurance company will be taking on a lower risk, and thus charge you less.

If your commercial auto rates are too high, it might be time to shop around for a new policy. Just as with your personal auto policy, you need to compare rates to find the best deal for your company. Smart choices combined with smart policy shopping can mean much better rates.   Give us a call and let’s see what we can do for your business, 401-433-1111.

Because Accidents Happen

One of the most essential elements of protecting the survival of your business is general liability insurance. While this type of coverage is especially important if you have significant interactions with the public, the sad truth is that in today’s litigious society, EVERY business should protect itself against the possibility of lawsuits.

Perhaps you believe your particular business is so low risk that commercial liability insurance doesn’t make statistical sense for you. In which case, let me ask you a few questions.

• Does your business have a common area such as a storefront or reception area?
• Do your employees often drive as part of their job-related activities?
• Does any part of your business involve the operation of heavy equipment?
• Do you manufacture any item intended to be used by others?

If you answered “Yes” to any of these questions, then you aren’t low-risk enough to even think about passing on general liability insurance.

But even if you answered “No” to all of the questions, you should still make it a point to protect yourself by purchasing a general liability insurance policy. Why?

Individuals can legitimately hurt themselves or cause accidents in an infinite number of unpredictable ways. In some jurisdictions, courts have held that property owners are liable even for injuries to trespassers and thieves. In the event of any sort of incident, the opposing attorneys are more likely to act responsibly if they know they have to deal with a huge insurance company instead of an isolated business. You’ve got enough to deal with trying to make an honest living without having to worry about lawsuits falling out of the sky.

The Daigneau Insurance Agency specializes in matching businesses with the most appropriate policies for their commercial insurance needs. If your company isn’t already covered by a general liability policy or if you would like us to review your current plan, please give us a call ASAP at 401-433-1111.  Let us provide you with greater peace of mind and make sure your business is protected against the vagaries of fortune.