General Liability Insurance for New York Businesses

Big City Brings Bigger Stakes

New York State is one of the most litigious places to do business. Everything’s bigger, including lawsuits and settlements even if you don’t go to trial. Between 2010-2014, the average slip-and-fall case settlement in New York state was $789,600; and the largest settlement was $16.5 million! What would that do to your bottom line if you don’t have insurance?

What is General Liability Insurance?

Also known as Commercial General Liability, this coverage protects your business from financial loss as a result of claims for injury, medical expenses and damage to property caused to others by you or your employees. Your risk lies in the unexpected: a customer trips and injures himself, an employee compromises your database, or a client sues you for slander. Even if you’re a consultant/freelancer, a client may ask you to provide a certificate of insurance in case you damage something at their office.

Four out of ten small businesses are likely to experience a property or general liability claim in the next 10 years, according to the Insurance Journal.

What kinds of businesses need General Liability?

The short answer: any business that interacts with the public or customers or has a location that is open to the public. But some industries are higher risk than others. For example, a retail shop open to the public has more risk exposure than an IT consultant working from home. General liability coverage for contractors can be more expensive because their work involves someone else’s property. And if you’re a chainsaw artist carving tree stumps in a public park, coverage could be hard to find.

We’ve worked with New York City businesses of all types, from retail and restaurant to contractor and architect.
Example professions include:

Architect/Engineer
Automobile Dealers/Service
Consultants/Freelancers
Contractors
Fitness
Janitorial/Maintenance
Health/Beauty/Spa
IT/Technology
Landscape/Lawn Care (in NYC?)
Real Estate
Restaurateurs
Retailers
Therapists

Why do I need a General Liability policy?

Running a business in New York City carries inherent risk. Accidents happen and your business could be held responsible, costing you millions. Clients want to know you’re financially stable and won’t go under if you’re sued. You’ve worked hard to build your business, you don’t want to lose it due to an outrageous lawsuit settlement. You need general liability if you or or your employees:

Represent your company to the public.
Interact with clients/customers face to face at your place of business or theirs.
Access client equipment/property.
Conduct business at third-party locations such as contractors/architects at a building site.

General liability coverage is also helpful if:

Your customer/client requires you to have it before doing business with them.
Your landlord/lease requires it.
You’re applying for certain professional licenses that require it.

If a lawsuit is involved, a general liability claim can average more than $75,000 per case to defend and settle, according to the Insurance Journal.*Do you want attribution?

How General Liability Helps Your Business

Can protect you against ruinous lawsuits and avoid bankruptcy
Can pay medical expenses if others are injured on your property
Can protect company assets
Can pay for unexpected legal costs
Can help you land a contract
Can help you rent commercial space
Can help you get certain professional licenses

General Liability Quick Facts

While not required by law in New York, General Liability can cover some of the most common lawsuits that arise from everyday business. It covers:

Third party bodily injury – Covers immediate medical expenses if a customer is hurt on your property, or legal expenses if they sue.
Third party property damage – Covers expenses to repair or replace customer property you or your employee damages.
Product liability – Covers legal expenses should a customer sue over a faulty product.
Libel, slander and copyright – Covers legal expenses if someone sues your business over slander, libel or copyright infringement
Business Identity theft

General Liability does NOT cover:

Professional errors (that’s professional liability)
Employee injuries (that’s workers’ comp)
Damage to your business property (that’s property coverage)
Employee discrimination lawsuits (that’s EPL)
Use of vehicles (that’s your commercial auto policy)

What are the most common examples of general liability claims?

Imagine if:

Damage to Others Property – You’re a plumber and you accidentally knocks over a customer’s laptop while maneuvering through the apartment.
Bodily injury – In a classic trip and fall scenario, a customer injures himself and you’re liable for medical and legal expenses.
Advertising injury – You unintentionally infringe on a third party’s copyright or trade slogan.
Slander, libel – Your employee, a personal trainer, speaks unflatteringly about a client in the elevator and is overheard.
Medical Expenses – You’re a massage therapist and your table snaps under the weight of a heavy client and he’s injured.
Defense costs – A client sues you, an accountant, for mistakes on his tax return that cost him hundreds of thousands; legal fees can easily soar.
Electronic data liability – You’re an IT professional and you damage your client’s server, destroying electronic data.
Actions of your staff – You’re an IT consultant and your assistant blabs about your client’s top secret new idea while at a bar and a competitor overhears.

The most costly general liability claim for a small business is reputational harm, which includes libel, slander and violation of privacy.

What other coverages might I need?

Property – no matter if you rent, lease or own your own building
Professional liability (E&O) – If you offer professional services or regularly give advice to clients.
Workers’ comp – if you have employees
Employment Practices Liability – if you have even one employee
Auto policy – if you have company cars or use your own car for business
Cyber insurance – if you handle sensitive information, store data or process credit cards.

Depending on your business, you might need all or none of these. Don’t worry, we’ll examine your risks, see which coverages you really need and offer recommendations to protect your business. Plus, we’ll customize the size of your policy to the size of your business, then review your coverage every year to make sure we keep up with your growth. Anything less and we wouldn’t be doing our job.

Legal issues cost small businesses in the United States more than $100 billion each year, according to a U.S. Chamber of Commerce report.

Why should I choose HCP?

We’re entrepreneurs too and we’ll protect your interests as if they were our own. Honig Conte Porrino has worked with New York City businesses of all types and we understand the challenges you must overcome to succeed. (We should, HCP has been doing this for more than 100 years!) Whether you’re in finance or law, retail or restaurant, HCP has the expertise to help you every step of the way.

We’ll pair you with an agent who specializes in your business and can coach you on how to protect against the risks you face. In addition, many of our employees have worked with us 15, even 25 years, and make their career here. You get to work with the same person year in, year out. No need to initiate someone new to how your company works.

Small businesses are a frequent target of frivolous lawsuits since they’re more likely to settle for less than spend thousands in litigation. As a result, small businesses pay about $35.6 billion out of pocket to settle claims each year, according to a National Federation for Independent Business article.