About General Liability Insurance

All businesses, regardless of industry, face risks that should be covered by insurance. The most common and comprehensive type of policy business owners invest in is general liability insurance (or CGL).

Some of the risks CGL insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

While businesses aren't legally required to carry general liability insurance, operating without it is extremely risky. If your business is sued, you could end up facing fees totaling hundreds of thousands of dollars (or more). Having a sufficient CGL policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.

Learn more about the risks covered by general liability insurance.


Example 1: A big storm hits your area overnight, causing damage to your roof that allows water to pour into your building. Numerous clocks left with you for repair are ruined. Your general liability insurance will pay for damage to customer property.

Example 2: A client is visiting your shop to discuss having his clock repaired. An employee has recently mopped the floor but forgot to put out a wet floor sign. The client slips and falls, breaking his arm. He demands that you pay for his medical treatment. Your general liability insurance would likely cover this expense.

Example 3: You are visiting the home of a client to repair an expensive grandfather clock. You trip and fall into the clock, knocking it to the ground and smashing it. Your general liability insurance policy would cover this expense.

Of course, this is not an exhaustive list of perils a general liability insurance policy will cover, and some conditions may result in a particular peril not being covered. It's always best to talk to your agent in-depth about the specifics of your policy to avoid blind spots in coverage.

Cost Of General Liability Insurance

On average, clock repair businesses in America spend between $500 - $1,500 per year for $1 million in general liability coverage.

Check out the chart below for a snapshot of average CGL expenditure across a variety of industries:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner's policy (BOP) rather than as a standalone policy. A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

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Other Types Of Coverage Clock Repair Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all clock repair businesses should obtain:

Professional Liability Insurance

With a professional liability insurance policy, your business is protected from negligence claims due to errors or failure to perform. If a client decides that you made an error that caused the injury and sues your company, your policy will pay for your legal defense fees. It will also pay for a settlement if one is necessary.

Commercial Property Insurance

You have invested a lot of money in your photography equipment, editing equipment, and studio equipment. If you were to lose most or all of it due to an unexpected event, like a fire, it may be difficult to replace all of it out of pocket. A commercial property policy would provide coverage for such losses.

Types Of Coverage Some Clock Repair Businesses May Need

In addition to the policies outlined above, there are a few other types of coverage your clock repair business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.

Commercial Auto Insurance

If you have a car, truck, or van that you use primarily for business, your state most likely requires you to carry commercial auto insurance. With a commercial auto policy, you can get help with repair or replacement costs if you are involved in an accident. If you cause the accident, the policy will help pay for damages to other vehicles as well, along with medical treatment for anyone injured.

Workers’ Compensation Insurance

If you have employees, chances are your state requires you to carry workers’ compensation insurance. Workers’ comp provides protection for your employees if they are injured performing job-related duties. If they are hurt on the job, they can get medical treatment through your policy. The policy will also help to cover lost wages if they are unable to work while they recover from their injuries.

Additional Steps To Protect Your Business

Although it's easy (and essential) to invest in business insurance, it should not be your frontline defense. Yes, insurance will compensate for your business' financial losses after an incident occurs, but it's much better to avoid losses altogether.

With this in mind, here are three things you can do to better protect your business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up a limited liability company (LLC) to protect your personal assets. (Refer to our guide for step-by-step instructions on how to form an LLC in your state.)
  • Streamline your business' internal processes. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.