Running a small business in Colorado comes with risks, from customer injuries to property damage claims. Without the right insurance, a single lawsuit could result in financial hardship or even force your business to close. That’s why General Liability Insurance is a must-have for Colorado entrepreneurs in 2025. This guide will explain what general liability insurance covers, why it’s essential, and how to choose the right policy.
What is General Liability Insurance?
General liability insurance protects businesses against third-party claims of bodily injury, property damage, and personal injury. Whether you operate a retail store, restaurant, or home-based business, this coverage helps pay for legal fees, medical costs, and settlements.
What Does General Liability Insurance Cover?
A general liability policy typically includes:
- Bodily Injury Coverage
If a customer or visitor gets injured on your business premises, liability insurance helps cover:
- Medical expenses.
- Legal fees if they sue your business.
- Settlements or court-ordered compensation.
Example: A customer slips on an icy walkway outside your shop and breaks their wrist. General liability insurance covers their medical bills and legal claims.
- Property Damage Coverage
If your business accidentally damages someone else’s property, this coverage helps pay for repairs or replacements.
Example: A plumbing business accidentally floods a client’s home. Liability insurance covers the repair costs.
- Personal and Advertising Injury Coverage
This includes protection against lawsuits related to:
- Libel or slander.
- Copyright infringement in advertisements.
- False advertising claims.
Example: A competitor accuses your business of defamation due to negative remarks in an ad campaign. General liability insurance covers legal fees.
