The Pros and Cons of Commercial General Insurance

Having commercial general insurance is very valuable to any business set up or industry beyond just protection of liability. Having the right insurance is very crucial for the success of your business as it goes further to determine the success of your business. If you are running a restaurant, for example, you need insurance to guard you against many factors in your business, such as hotel property or your chefs and waiters. Let’s look at the benefits of having commercial general insurance for your business.

  1. Protection against the unexpected

This is one of the main reasons why your business should have commercial general insurance. You might think you have control of everything that happens at your company, say a food parlor. Still, you might not tell when the unexpected is going to happen, say a fire in your cooking place of electricity fault from your store that can go unnoticed for long until there’s a fire outbreak. By making sure your business establishment has a good insurance cover, you will rest easy knowing very well that your business is well covered in case something unfortunate happens.

  1. Getting more large contracts

Having all-round insurance play a significant role in wining large business contract, a lot of companies require one to have a comprehensive cover before you bid for their contract. Having a good cover, you will be a step ahead of your competitors.

  1. Cover against data breach

Your data is crucial and should be protected by all means. If you keep infomercials of your clients like name, address, or social security details as for the case of the hotel industry, it is essential to have an insurance policy in place. Such policies have a provision for electronic data liability, which will come to your rescue in case hacking happens. If you do not have an insurance policy for such cases, you will land in big trouble of exposing or revealing someone’s data, which should otherwise remain confidential. It can go a long way to cost you a lot of many in fighting court cases and even lead to the closure of your business at the end. Having the policy to cover for such incidents can save your business.

  1. Injury claims

Injuries at the workplace are inevitable; your restaurant chefs might get physical injuries in their line of duty. Instead of incurring such costs, you can stay fearless by getting a good insurance policy.

  1. Protection against staff actions

Guarding against staff actions is very difficult. You can’t tell their next move; they can go further to destroy your property or course injuries. You can get all these covered under the commercial general insurance.

Cons of commercial general liability insurance

Extra cost – this is the most common factor why most people do not take an insurance policy. The price of insurance that one has to pay depends on various factors such as the size of the business; several people covered the type of business you are running and many more. In the end, you will realize the cost of providing an insurance cover might be unaffordable to you.

Another disadvantage of taking insurance is that some insurance firm takes a long time to respond to emergencies and provide due compensation when something unfortunate happens. It can take months and even years of struggle before you receive your payment.

In conclusion, taking commercial general insurance for your business is vital, but it is up to your discretion to decide what to be covered or not. Don’t wait, take action today, and protect your business.


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