Reports have shown that approximately four out of ten SMEs are at risk of at least one general liability claim within ten years. This indicates that all companies need this policy. The financial expenses of a lawsuit can wreck a business, and this policy helps to minimize the costs.
There are multiple scenarios where costly liability claims can arise, even when carrying out regular work operations. You should consider taking out general liability insurance if you engage in any of these common business situations, such as:
You or your staff members represent a client
Meeting with clients to discuss face to face
Working on another’s property or with another person’s property
Using third-party locations for business activities (like construction companies)
Advertising your business
These situations are general to businesses everywhere, so it is best to stay prepared. Many clients also request that a firm has general liability insurance coverage before they can employ their services. Customers who want to ensure that their rights are protected should anything go sideways, so having this coverage can also boost patronage. A certificate of general liability insurance is sufficient proof to allay the fears of a concerned client and encourage them to work with your company.