Liability insurance is an essential component of any insurance plan. General liability insurance can cover claims for bodily harm or property damage to your company. General commercial liability insurance is another name for it.
Coverage of liability insurance
General liability insurance covers expenses that may occur during normal business operations. If there is no coverage, general liability insurancewould have to be paid out of pocket, which many businesses cannot afford.
General liability covers claims such as
- Bodily harm to a third party: A customer has the right to sue a company for any bodily injury, general liability insurance includes coverage for bodily injury.
- Property damage caused by a third party: Property damage coverage may help to cover the costs of repairs or replacement if the business damages other property.
- Reputational damage: Cover the costs of defending the company in court, during slander of the company.
- Injuries from advertising: Company can be sued for copyright infringement, and can be covered up by general liability insurance.
The types of general liability insurance
Obtaining other types of liability insurance include:
- Commercial umbrella insurance adds limits to some existing liability policies to help pay for costly claims.
- Employment practices general liability insurance can help cover legal defense costs and settlements or judgments if a current, discrimination, or wrongful termination.
- Management liability insurance helps protect business directors and officers from costly claims.
- Commercial auto insurance helps protect the person and the employees.
What does this insurance not cover?
General liability insurance doesn’t cover these claims
- Workplace injuries or illnesses that are covered by workers’ compensation insurance.
- Commercial property insurance can assist with damage to the business property.
- Errors in company’s professionals that professional liability insurance can help cover
Why is it needed?
Responsibility claims are common as well as costly. Over the next ten years, four out of every ten small businesses will almost certainly face a liability claim. Without general liability insurance, a company would be forced to pay the expenses out of its pocket, potentially forcing you out of business.
General liability insurance is needed before working with other companies. Some employers may require to provide proof of insurance, known as a certificate of insurance.