The Importance of General Liability Insurance

As an entrepreneur with a small business, the entrepreneurship world provides opportunities as well as the promise of realizing and achieving your dreams.

Although this journey sounds exhilarating, it comes with a share of uncertainties and risks. Because of that, it is important to safeguard your business. Among the important pillars of protecting your enterprise is general liability insurance for business in Miami, FL.

What General Liability Insurance Is?

Every business, no matter the operation and size, should, and needs to have, general liability insurance. A general liability insurance policy is made to protect businesses from claims or lawsuits that arise from the insured’s liabilities.

It is also designed to cover a non-professional negligent act. Negligence refers to failing to take normal or proper care of someone or something.

What It Covers?

According to experts at Del Toro Insurance, general liability policies can help cover claims which may come up during business operations, like body injuries and property damage. Bodily injuries are those that your small business might have caused. This may include customer slips as well as falls. A general liability policy may help to cover your medical costs.

On the other hand, property damage may come from employee accidents, such as breaking clients’ windows when working on their homes. This insurance policy may also help cover replacement or repair costs to fix windows.

General liability may also cover personal injuries, such as slander or libel. Not to mention, it helps to pay for business defense costs when the enterprise is used.


A business owner is exposed to a lot of liabilities, some of which may subject their properties to a substantial claim. Every business owner should have a property asset plan built around a liability insurance policy. Some of the major types of general liability insurance are:

  • Commercial liability insurance
  • Comprehensive general liability
  • Umbrella liability
  • Officer and director liability coverage
  • Workers’ compensation and employers’ liability
  • Indemnity insurance
  • Product liability insurance

The Cost?

General liability insurance costs vary based on a few factors, including coverage limits, revenue, location, and business type. Generally, premiums are often calculated depending on the risks related to business activities.

Although the cost might seem like extra expenses, it would be best to compare general liability insurance quotes and know that it pales when compared to the potential financial devastation that results from major accidents or lawsuits.

Benefits of General Liability Insurance to a Small Business

As an entrepreneur with a small business, you want to show clients you are trustworthy and responsible. Carrying general liability insurance policies can do just that. It will help you understand the risks your business faces during daily business operations. A good insurer may also give an insurance certificate to prove to your clients that you have a liability policy.

General liability insurance can also help you to sign a lease. If you plan to rent a building or space so you can see certificates of liability insurance policy. This shows you have coverage, which may protect your small business from liability claims.

Lastly, general liability insurance claims may come from common situations in businesses and might be costly. Your small business can be more at risk from a liability lawsuit or claim if your employees:

  • Work on clients’ properties
  • Meet with customers one-on-one
  • Represent your own business.

The Takeaway

If you are trading as a tradesperson or small business, reputation is important. You can get a lot done through referrals. Potential customers can check to determine whether you are liable before they trust you to do business. They can do that by asking to check your general liability insurance certificates or visit your website to get evidence of having one. Plus, you will look more trustworthy and professional when you get insured.