Michael Saltzstein: What is Commercial General Liability Insurance?

In the context of small enterprises, liability refers to your company's legal responsibility for third-party losses. When you start a business, you subject yourself to many liability concerns. In rare cases, even if your company did nothing wrong, you may find yourself embroiled in a lawsuit. So, Michael Saltzstein believes having the correct insurance coverage can help you reduce the losses you incur due to liability claims.

What is Commercial General Liability Insurance?

Commercial general liability insurance can protect you and your company from financial loss if you are found legally liable for physical harm or property damage to a third party caused by a product you sell. Also, commercial general liability insurance can protect you if you or your employees do business offsite.

Michael Saltzstein believes one of the best features of commercial general liability insurance is the various levels of coverage available. Meaning, a policy may contain premises coverage, which protects your company from claims that occur at its physical site during regular business activities. But it may also include coverage for bodily injury and property damage caused by a completed product or service performed at another place.

Liability for property damage is also a significant concern for small business owners. If you are held legally liable for damage to a third party's property, you may incur expensive legal fees. It may also have a significant impact on your clientele's perception of you. In this case, Michael Saltzstein believes it would significantly help if you have commercial general liability insurance, which can mitigate costs incurred if your company is deemed liable for property damage.

Some small business owners are unaware that they require liability insurance or believe it is prohibitively expensive. But, according to Michael Saltzstein, the truth is that no matter how tiny your business is, even if you run it from your house, it is still vulnerable to numerous types of liability. So, you should at least get a baseline commercial general liability coverage in place to protect yourself from risk and loss.