Commercial general liability insurance is one of the first policies businesses select for security, especially for protection against third-party liabilities. In many cases, this type of insurance can increase the odds of your company succeeding instead of failing due to product liability, property damage, or accidental injuries. Below are factors and examples that can help you better understand the general liability type of commercial insurance and determine if it suits your business best, including information about its deductible requirements.
Before coverage starts, you and an insurance provider will have several factors to agree upon, including deductibles. Commercial general liability insurance requires a deductible, and you typically learn the amount when your policy quote is submitted. This is a fixed out-of-pocket expense you pay, depending on other options you select. For example, you could sometimes set the deductible as low as zero. However, your premium could be higher. The business and the provider typically choose the amount, allowing your business to choose the lowest amounts or higher deductibles based on other benefits, such as a lower premium or fewer out-of-pocket expenses.
The options your company or establishment can choose will depend on the insurance provider. In many cases, there are multiple choices, with a flat deductible being the most popular. In this instance, a fixed dollar amount is applied to each loss. However, with a waiting-period deductible, there’s a specific time frame for your establishment to be shut down to qualify for payments under a business interruption endorsement. Another option is the percentage deductible. If you choose this route, a percentage is applied to your property’s total value, also known as catastrophe damage.
Although there’s typically a fee, deductibles are financially beneficial. Your deductible should cover most of the damage if your business has an issue or malfunctions occur. For instance, if you own a clothing store and your customers fall due to the uneven flooring in fitting rooms, you could be liable for damages, such as emergency room visits and other medical bills. In these instances, your business must pay your deductible amount, and your insurance policy typically covers the remaining balance. As a result, you may have a financial setback, but it’s not as significant as it could be, which lowers the need to shut your business down temporarily or entirely.
There are many types of commercial general liability coverage that help different businesses, regardless of the establishment type you open or the products and services you provide. However, you must contemplate other coverage options and consider bundling them with your policy. This includes commercial auto coverage, workers’ compensation, and pollution liability insurance. Although not all coverage or providers are the same, it’s crucial to see what customization options are available to help with business-related risks.
Business owners need to make sure they protect their companies, customers, and employees by purchasing the right insurance coverage. For affordable, reliable commercial insurance as well as homeowners, renters, motorcycle, and auto insurance, Chula Vista residents should call on the trustworthy professionals at Altra Insurance Services . Reach out to us today at (800) 719-9972 to learn how we can satisfy all your insurance needs.
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