California Business Liability Insurance

Why It’s Important


No matter how diligently you remove all possible hazards from your business, the truth is that you could still be sued successfully for accidents resulting from the carelessness of a customer. This is where business liability insurance protects your business.

Thankfully, you can protect yourself and your business against devastating claims for things over which you have minimal control. This type of insurance is called Business Liability Insurance, and its just what you need in order to counter the unknown risks posed by products, directors & officers, errors & omissions, discrimination and other such liabilities.

What Does Business Liability Insurance Cover?

A typical commercial general liability policy provides coverage for claims of bodily injury or other physical injury, personal injury (libel or slander), advertising injury and property damage as a result of your products, premises or operations, and can be offered as a package policy with other coverages such as property, crime, automobile and more. As a safeguard against liability, business liability insurance enables you to continue your normal operations while dealing with real or fraudulent claims of negligence or wrongdoing. These policies also provide coverage for the cost to defend and settle claims.

Here is more detail into what a typical Business Liability Insurance policy may cover:

  • Automatic additional insured: Coverage is provided for written contracts, agreements and permits.
  • Personal and advertising injury: Protects against offenses made by you or your staff during the course of business, such as libel, slander, disparagement or copyright infringement in advertisements.
  • Defense costs: Provides coverage for legal expenses for liability claims brought against your business, regardless of who is at fault.
  • Medical expenses: Provides coverage for medical expenses if someone is injured on your premises or by your products.
  • Premises and operations liability: Provides coverage for bodily injury and property damage sustained by others on your premises or in conjunction with your business operations.
  • Products liability: Provides coverage for bodily injury and property damage sustained by others as a result of your products.

How Much Coverage Does Your Business Need?

The amount of coverage that your business needs depends on three factors: perceived risk, where you operate your business and the type of products you manufacture.

  • Perceived risk: Consider the amount of risk associated with your business operations and functions. For instance, if you manufacture heavy machinery you would generally need more coverage as compared to another organization that manufactures stuffed animals.
  • Premises and operations liability: If you operate in a state that has a reputation for rewarding high damages, then you may wish to purchase higher limits of liability.
  • Type of product manufactured: If you manufacture a dangerous product, you may want to carry higher limits of liability.

Remember, you can purchase an Umbrella Liability Insurance policy to help achieve the desired limit of liability.

Other Ways to Protect Your Business, In Addition to Business Liability Insurance

Here are some other tips for protecting your business.

  • Establish a high standard for product quality control at your organization.
  • Keep all company records up to date and accurate.
  • Train your employees thoroughly and properly.
  • Ask GDI Insurance Agency, Inc. for safety and compliance information.

GDI Insurance Agency, Inc. offers Professional Liability Insurance services to Manufacturers, Wholesale, Retail, Services, Transportation, Construction, Commercial Real Estate, small Contractors, Restaurants, Hotels, Apartments, and many other businesses throughout California.

We have the valuable experience and the necessary resources to analyze and recommend the correct amount of Business Liability Insurance for your California small business.

Protecting your Business Assets and Liabilities

Our exposure analysis identifies your business’ risks and recommends the optimal blend of insurance coverage and risk management. This generally involves a combination of:

Business Liability Insurance Features

Business liability insurance coverage insures your business in the event of accidents and injury that might occur on your premises and any exposures related to your products. It will protect your business from possible huge payments for bodily injury or property damage to a third party and for medical expenses accruing to the underlying incident. It will also absorb the cost of defending lawsuits that may include needing investigations or settlements, and for any judgments or bonds required during an appeal.

What Should You Do Next?

Regardless of whether you’re a small contractor, large employer or a small business owner, GDI Insurance Agency, Inc. will provide exceptional liability insurance coverage for your business at an affordable cost.  Fill out the simple insurance quote form above to request a customized quote for your Business Liability Insurance plan, or give us a call at 1-209-634-2929 to speak with a Commercial Insurance Specialist today!