Minnesota Commercial General Liability Insurance

Understanding the intricacies of general liability insurance can be a daunting task. However, it is an essential component for businesses operating in Minnesota. This guide aims to provide comprehensive information about general liability insurance in Minnesota, from its definition to its benefits and how to acquire it.

General liability insurance, also known as commercial general liability (CGL) insurance, is a policy that protects businesses from financial loss resulting from claims of injury or damage caused to others by the business or its employees. It covers legal costs and payouts for which the insured party is found liable.

Whether it's a customer slipping on a wet floor, a client claiming that your advertisement caused them financial loss, or a bystander injured by your business operations, general liability insurance provides coverage. It's important to note that it does not cover employee injuries, auto accidents, punitive damages (in most states), workmanship issues, or professional mistakes.

General liability insurance in Minnesota covers a wide range of incidents. Here are the key areas:

Bodily Injury and Property Damage Liability

This covers physical harm to a person or damage to someone's property caused by your business operations or at your business premises.

For example, if a customer slips and falls at your store, resulting in medical expenses, your general liability insurance would cover these costs. Similarly, if an employee accidentally damages a customer's property while providing a service, your policy would cover the repair or replacement costs.

Personal and Advertising Injury

This covers non-physical injuries and financial losses caused by your business. This includes claims of libel, slander, copyright infringement, invasion of privacy, and false advertising.

For instance, if your business is sued for using a competitor's copyrighted material in your advertising, your general liability insurance would cover the legal costs and any required payouts.

Acquiring general liability insurance in Minnesota involves several steps:

1. Assess Your Risk: The first step is to assess the level of risk associated with your business. This depends on the nature of your business, the location, the number of employees, and other factors.
2. Find a Reputable Insurance Provider: Look for insurance providers that specialize in commercial insurance and have a good reputation in the market. You can do this by checking reviews and ratings, asking for referrals, and comparing quotes.
3. Customize Your Policy: Once you've chosen a provider, work with them to customize your policy based on your business's specific needs. This may include adding additional coverages, such as professional liability or commercial auto insurance.
4. Review and Purchase: Review the policy carefully before purchasing. Make sure you understand the coverage limits, exclusions, deductibles, and premium costs. Once you're satisfied, you can proceed with the purchase.