Saturday, 21 June 2014

Do Home-Based Businesses Need Commercial General Liability Insurance Coverage?

If you own a business, the fact that it is home-based does not automatically make you immune to being sued. In such a litigious world, being adequately insured should be every business owner's priority... including home-based businesses owners. 

A question that tends to pop up a lot among such owners is whether or not they need general liability insurance coverage ( If you are unsure of what this type of coverage entails, here's what you need to know: According to IBC, the proper definition of CGL is as follows:

A standard form of liability insurance developed for use in the business sector. It is usually contained in a broader mercantile policy also covering property loss and business interruption.

Without this policy, you constantly put yourself at risk of being sued for property damage or injuries that may have been incurred by a third party, either on your premise or somewhere else. As an example, it is not uncommon for a prospective client on their way to meeting you to trip and injure themselves on your premise. Similarly, several cases of people accidentally injuring another person during business meetings away from home have been reported. Those cases often tend to end up in the court.

In those type of situations, proving your innocence can prove to be quite difficult... and costly. The common misconception that only "large companies" need a general liability insurance policy is false and very dangerous. Without this type of coverage, a person puts themselves at risk of being sued on an almost daily basis. If there is one type of policy that should never be overlooked by home-based business owners, it's definitely that one.

Still unsure of whether or not you need it? Talk to your insurance broker and come back to request your free insurance quote!


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