This is the most common reason why business owners should ensure that they have taken out a general liability insurance policy, because if your client requires you to have one and you don’t, they’ll simply take their business elsewhere.
Many businesses see their clients visiting them on site, and if one of them should happen to have an accident while they are there, or damages your property in some way, then this type of insurance will protect you against potential lawsuits and/or medical payments.
You may not realise it, but when you send an employee to a third-party location, then you and your business are responsible for them and any work that they carry out there. Any work carried out off site needs to be insured adequately, and should they injure themselves or anyone else, or cause damage to property, you need to know that you won’t be hit with expensive lawsuits and/or medical bills.
It is not unheard of for some businesses to take care or control of their clients’ equipment, but if some event such as a fire or theft occurs, then without general liability insurance, you could find yourself knee deep in claim costs. If you are working with a company’s network, server or systems integration, then this type of coverage is essential as it protects you against costs incurred from damage to computer equipment caused by power failures or viruses.
Words such as ‘libel’, ‘slander’, ‘disparagement’ or ‘infringement’ may be used against you when you’re asked to write or speak about a clients’ business, but if you have an active general liability insurance policy, you will be better protected. This type of coverage is designed to give protection against lawsuits that may arise from the publication of material that slanders or libels another person or organisation, and can cover legal defence costs from those claiming false, malicious or misleading statements in advertisements, promotional flyers, brochures or websites.