General Liability Insurance
 |
Getting Started: Request A FREE General Liability Quote | Contact Us |
|
Because mistakes happen, we need liability insurance. As a business owner, protecting your company is the most important thing you can do. You should always be trying to find the best way to shield your business from the threat of a lawsuit and general liability insurance is the first step in ensuring your business is protected. Business insurance protects your company in various ways, however general liability is a particular type that can cover various sectors of your business. How much liability coverage do you need? This can be difficult because benchmarks really do not exist. While some brokers recommend that your coverage match that of the largest court award for a case relevant to your business, others base recommendations on company assets. |
|
How General Liability Works
Under a general liability insurance policy, the insurer is obligated to
pay the legal costs of a business in a covered liability claim or
lawsuit. Covered liability claims include bodily injury, property
damage, personal injury, and advertising injury (damage from slander or
false advertising). The insurance company also covers compensatory and
general damages. Punitive damages aren't covered under general liability
insurance policies because they're considered to be punishment for
intentional acts.
General liability insurance policies always state a maximum amount that the insurer will pay during the policy period. Usually these policies also list the maximum amount the insurer will pay per occurrence. For example, if a company has a $1 million occurrence cap in its liability policy and it's successfully sued for $1.5 million, the insurer would pay $1 million and the business would be responsible for paying $500,000.
To cover these types of situations, many companies purchase umbrella liability insurance, which picks up where their general liability coverage ends. Umbrella liability covers payments that exceed their other policy's limits, and provides additional coverage for liabilities not covered in a standard liability insurance policy.
Most insurance companies require their policyholders to report as soon as possible any accidents that could lead to a liability claim. The insurer may then require the business owner to document the situation, forward all summonses and legal notices, and cooperate fully in any investigations. Taking precautions before an accident can help keep your liability and insurance rates down. All businesses can take certain steps to lower the chance of a liability insurance claim:
• Set a high standard for product quality control;
• Make sure all company records are complete and up-to-date;
• Be sure employees are properly trained;
• Get safety tips for your type of business from your insurance company.
Let's Get Started: Request A Quote
| Or Contact Us for more information.
