After an accident related to your business, there can be a lot of expenses related to the incident itself. But one of the main concerns is how an accident or lawsuit may affect your business’ reputation. There are also claims related to reputational harm you can cause to someone else. 

It’s important to understand what reputational harm is and how it impacts your business. Here’s what you need to know.  

What Is Reputational Harm?  
Let’s say you are trying to win over a customer. You know your competitor spoke to the customer just a few days ago. You want the business. You lie about the other company, stating it has lawsuits filed against it or does poor quality work. You have no evidence to back up your claim.  

In this situation, you might cause unfounded harm to another business. That business could lose customers, money and trust in the community. More specifically, reputational harm could include defaming the products or services of another company. It could include violations of privacy. It can also include instances of libel or slander.  

The affected business may want to file a lawsuit against you for the reputational harm you caused. In this case, your business may be responsible for paying for the perceived financial losses of the other company. Those payments can get expensive.  

Long story short, if you cause financial damages to another party in any of these areas, you could have to pick up the pieces.  

What Does General Liability Insurance Do?  
General liability insurance is a type of protective tool for business owners. It often helps cover most of the risks that fall under reputational harm. It will not cover numerous claims. 

For example, if you continue to slander a company, the policy will not continue to cover your losses. However, it can cover many types of financial losses other businesses or individuals suffer as a result of one instance of reputational harm. Keep in mind this may also cover the actions and words that one of your employees used as well.  

Make sure that you speak with an insurance agent about your general liability insurance policy. You will want coverage to cover claims of reputational damage, but also ask about coverage that can cover reputational damage that can fall to your business. Shop around and compare quotes to find the best general liability insurance today.