With parcel delivery becoming an integral part of doing business - and society at large - a parcel delivery business can be an attractive prospect. However, like many other industries, insurance plays a significant role in protecting your business from risk. Although it may seem obvious, knowing the details of why general liability insurance is essential for your parcel delivery business can help you strategize and know what to look for. Let's look at this type of insurance and how OVD Insurance can help.

What Does General Liability Insurance Cover?

General liability insurance protects your business from unforeseen claims of many kinds. It may or may not be required by law, certain contracts, or other arrangements, but regardless, it's a smart investment in your business. Here are some of the things it protects against:

• Damage to a customer's property by an employee
• Bodily injury by somebody other than an employee on your property
• Medical payments
• Product liability in the event your product causes harm to people or property
• Libel, slander, and copyright lawsuit expenses (also called personal or advertising injury)

Why Do I Need General Liability Insurance?

Parcel delivery businesses can especially benefit from general liability insurance. Here are some hypothetical situations in which it can save your business significant expenses and headaches:

• A customer claims that several packages were not delivered and sues your business. Your policy both compensates the customer and pays legal fees.
• A forklift driver bumps a pallet and causes considerable damage to expensive hardware. Your policy can pay the cost of replacing your customer's damaged property.
• A client visits your office and slips on a wet spot, sustaining injury and suing. Your policy covers the cost of treatment and any legal defense costs (even for out-of-court settlement).
• A driver runs over costly landscaping and causes damage to an outbuilding in a rush to deliver a package. Your policy pays the cost of the customer's repairs.

How Much Does General Liability Insurance Cost?

On average, delivery businesses spend $450-1,500 per year on general liability coverage of about $1 million. This cost can vary widely depending on factors like your location, deductible, company size, and more. One of the best ways to reduce the cost of general liability insurance is to bundle it in a business owner's policy, a package that typically includes coverage like business interruption and property insurance. This can give you more comprehensive coverage for a broader range of situations.

General Liability Insurance with OVD Insurance

At OVD Insurance, we can tailor an insurance policy for your parcel delivery business's needs. We work with a wide variety of industries and can help you minimize risk with deep knowledge of your unique exposures. To learn more about general liability insurance and how it can benefit your business, contact us today for a free consultation.