Many states already require it, and in the cases where the states do not, most property owners will require it. Today let’s discuss the necessity of renters maintaining a liability insurance policy to demonstrate adequate coverage in the event of an accident.
What is commercial general liability insurance?
According to The Hartford, “commercial general liability insurance (CGL) helps protect your business from claims that it caused bodily injuries or damage to another person’s property.”
What does commercial general liability insurance cover?
A CGL policy will cover insurance claims from injuries or damage that a business may have caused including damage to personal property, bodily injury, personal injury, or advertising injury. Claims can be common and result in attorney fees, medical payments, judgments or settlements.
Why does a small business need CGL insurance?
The expenses above can add up. There is often not quick resolution to a claim of injury by an individual. A CGL policy provides coverage in the event an unfortunate event occurs and pays the many fees and payments mentioned above. If you rent a commercial space to operate your business, the property owner will want proof that your business has coverage so that their property will not be responsible for any lawsuit brought against your business. Additionally, the property owner will likely have their own private policy for their protection also.
Is a CGL insurance policy expensive?
The cost will vary based on several factors including location, the type of business you own, revenue and the coverage limits you select. CGL insurance can be very affordable and is typically seen as a cost of doing business that is necessary. You can expect to spend around $100 per month for CGL insurance coverage.
It doesn’t really matter the size of your business. Even if your business is very small, you still need protection from lawsuits for injury or illness related to the business you operate. In today’s society, it could be much more costly to operate without a CGL insurance policy. Policy coverage can vary greatly based on what you need. A trusted and wise insurance advisor will be able to recommend the best coverage for your needs.
Currently in the state of Florida, a CGL insurance policy is not required; however, landlords can require it as a stipulation of the lease agreement. You will want to inquire with a potential landlord about their requirements and meet them in advance of executing a lease agreement.
At Weaver Realty we work to prepare both property owners and their tenants for success in navigating property ownership and rental agreements. We have over 40 years of experience in commercial real estate and work diligently to earn and hold the trust of our clients. Call us today at 904-733-0039 to experience the difference in working with us.
