Insurance coverage is on a lot of small business owner’s minds these days, especially in today’s increasing litigious society. Anyone who can sue will, and more often than not, it is the small business owners who see the majority of these suits.

Business owners want to know exactly what General Liability Insurance is, why they need it, and How to determine the proper amount of coverage.

General liability insurance is the most basic of the coverages for small businesses. It generally covers property damages, libel/slander claims, medical expenses and tenant’s liability.

General liability coverage is important for a number of reasons, the most important of which is protecting yourself against lawsuits. Anytime someone slips and falls while on your property is a potential claim. Anytime your company slanders another company in an advertising campaign, you are at risk for lawsuit. Make sure you have the proper coverage in place before beginning your business operations.

Determining how much coverage you need is tricky and will require the involvement of your agent as well as any pertinent industry information. If you own a business in an industry with very low liability, your policy requirements might be much lower than a company in a different industry.