Benefits of Commercial General Liability Insurance
Carrying commercial general liability insurance (CGL), also called general liability (GL), can bring value to your small business beyond just liability protection. A CGL policy signifies a level of legitimacy for your business that can lessen some concerns your potential business associates might have. It can mean the difference between getting a job or not.
General liability insurance for small business growth
Commercial general liability insurance can positively impact business reputation and growth in the following ways:
Having small business liability insurance communicates to customers that you're willing to assume responsibility should your business be liable for an accident that occurs on the job. Not only does it demonstrate that you want to protect your business, but also that you have your customers' best interests in mind.
Shows you're established
Protecting your livelihood through a commercial general liability insurance policy implies that you're serious and intend to be in business a long time. Prospects, clients and others will see that you're not willing to risk a claim that could threaten your business's future. This reinforces trust and could result in you and your business being taken more seriously. If a client both trusts you and likes your product or service, they'll be more likely to recommend your business to others and give you repeat business.
Increases client contracts
Commercial general liability insurance isn't usually required by law, but clients often consider it a prerequisite for working with them. The reason is simple: Clients typically don't want to be liable for your mistakes. They might also assume you'll want to avoid a claim and therefore have higher safety standards than a business that doesn't carry this coverage. Again, this encourages trust that can ultimately lead to new business opportunities.
General liability insurance certificate
Many client contracts require you to provide a certificate of general liability insurance as evidence of coverage.