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Getting General Liability Insurance Coverage

When it comes to general liability insurance, most people know they should have it but don’t know what it covers them for. General business liability insurance is the safeguard against numerous risks. This kind of insurance protects the business and employee from different claims such as property damage, injuries, etc. Does that mean all businesses need it? Yes in one form or another most businesses will need some sort of liability insurance. 

What It Covers and What It Doesn’t

The first coverage is related to settlements, investigations, and lawsuits. If your business is sued for damages, the insurance covers attorney expenses and investigation. It also covers injury damages. Property damages may cause bodily injury. Claims can arise from these conditions. The risk of injury is quite high. It can be caused by many aspects such as property damages, operations, products, or business advertising. Liability insurance can also cover miscellaneous things. Liability insurance covers various things people may not have expected before. For example, it covers advertising injury such as copyright violation.

However, there are several situations that don’t get the coverage from general liability insurance. For starters, for an employee is injured. The company needs to ensure it has workers compensation in order to protect their employee’s.  The same rule applies for professional mistakes. Any professional mistake won’t get covered by business liability insurance. It’s as the same as the auto accidents. There is no such auto-related coverage. The company should buy auto insurance instead to protect their business. General liability insurance doesn’t cover punitive damages. Even though there are exceptions, such kind of insurance rarely protects punitive damages.

Next, general liability insurance doesn’t cover intentional acts. It won’t cover injuries or damages caused by intentional or expected acts. That means the insurance won’t cover any assaults made by the employee to a customer. An injured customer can sue the company. In this case, the insurance won’t cover it at all. What about the work? There’s a common term in a general liability insurance policy. It’s called workmanship exclusion. There’s no coverage for company’s warranty for employee’s work. Well, people can determine whether they need this kind of insurance or not using this information.

The Importance of Liability Insurance for a Business

For businessmen, general liability insurance is critical. Many people also call it as a commercial business liability. The aim is to protect assets of a company. It also covers or pays numerous obligations such as medical costs, injuries, or property damages. Not to mention it can cover the cost of an attorney and settlement. In some cases, the insurance covers damages to a property that people rent. The question is whether a business needs the liability insurance or not.

In order to prevent lots of loss, all businesses should apply for liability insurance. The premium varies, actually. It ranges from $700 to $1,000 depending on the size of business and coverage. This number is smaller when it’s compared to millions of dollars people need to spend for cases in the court. Basically, people can buy general liability insurance independently. However, it’s usually included as part of BOP. The next question is how people can determine their coverage needs. Beginners often have difficulties when applying for general liability insurance. Well, the coverage depends on the niche of business they are in. the fact is that each type of business has different risk levels.

For example, a web designer doesn’t require as much coverage as a building contractor. Business location becomes the next consideration. Some area owns a higher risk of damages than others. Business owners need to really learn this factor. If necessary, they need to talk to an agent regarding this issue. Overall, they shouldn’t be in a rush when buying a policy. The next question is how people can file a claim. Incidents do occur without warning. These may lead to a claim. In this case, people need to notify their insurance agent or company immediately. Plus, they must be ready to explain the details. These include the date, names, time, witnesses, etc.

What other insurance do people need? A business or company also needs worker compensation insurance. Not to mention they need state disability insurance. Some businesses also need extra coverage such as home business insurance, auto insurance, pollution insurance, alcohol liability insurance, etc. To put it simply, small businesses tend to need more coverage than big businesses do. It’s because the small companies have limited qualifications and experience in performing in the business field. Not to mention they don’t have enough money to fund all of the cases.

button (4)IMPORTANT – The information on this website is general in nature and does not take into account your personal needs and objectives, you should not act upon any of this information without first seeking advice from a qualified professional.