As a business in Georgia, carrying commercial liability insurance is not required. Georgia companies- depending on the business size- are however, required to carry worker’s compensation insurance for their employees.
Although commercial insurance is not mandatory, any company that is in operation would be wise to have a commercial insurance policy to protect them from unexpected liability, claims, income loss and property damage in the case of any unforeseen events. There is no current cap for compensatory damages from accidents, and punitive damages are capped at $250,000. If you don’t currently have commercial insurance, your business is at risk for serious payouts if you get hit with a lawsuit- legitimate or not- it can ultimately be detrimental to your company.
Commercial insurance policies will typically cover the following:
- Property Damage– including property damage from fire, theft and natural disasters that cause damage to your business property, structure and physical assets including office furnishings, computers and more. Some property damage policies will also cover other costs- like lost income, temporary moves and debris removal, etc.
- Personal Injury– Which includes slander, infringement, false arrest or any personal damages that damage your reputation or rights as a business.
- Bodily Injury- This will cover damage to a person- outside of an employee- that is injured at your place of business. Workers will be covered by worker’s compensation.
- Legal and defense fees– This will include costs for lawsuits that may be filed against your business and will be limited to the amount of your coverage. The policy will not cover damages for negligence on your behalf, nor willful misconduct
- Advertising Injury– Losses that are claimed due to your advertising
Commercial auto insurance may also be necessary if you use a vehicle for your business.