Does your business have enough General Liability Insurance? Most often, General Liability Insurance covers the legal liability arising out of injuries or damages suffered by customers, tenants, clients or the general public.
"General Liability Insurance" (GL) protects an insured from a wide a range of business exposures. This coverage can be purchased separately or attached to a commercial package policy.
The Importance of General Liability Insurance
If you own a small- to medium-sized business, you must be aware that every time you open your doors you expose yourself to a variety of potential liabilities. No matter how many precautions you’ve taken or how diligent you think you may be, it’s simply impossible to plan for every conceivable situation. You know that attorneys are everywhere and people love to sue for “easy money.” As a business owner protecting your assets with adequate general liability insurance is paramount.
Who Buys GL?
General liability or commercial general liability insurance is a must for start-ups or any business owner that wants more protection against a lawsuit. The comment I hear most, I don’t think I need a GL policy because my business is not a store front. Folks, General Liability policies are fit for stores, office, mobile site, or for internet businesses and will help protect your assets in the event that you are sued.
What GL Covers?
General Liability Insurance is one of the most common forms of insurance coverage chosen by small business owners. General liability insurance is also one of the most comprehensive insurance coverages. The policy covers any legal costs associated with a covered liability claim against the insured, as well as any general or compensatory damages (punitive damages are excluded) that may be awarded to a plaintiff.
Three of the most common types of claims often covered by General Liability policy are:
- Personal injuries caused by any action or negligence on the part of you or your employees
- Bodily injuries sustained by customers, employees, vendors, and visitors while on the premises of your business
- Property damage resulting from the actions or negligence of you or your employees
Other Forms of Liability Coverage
Advertising injury (* may be added to GL by endorsement) caused by intellectual property infringement, libel, and slander
Employers liability ( Workers Compensation Insurance) covers against personal injury and property loss claims filed against you by your employees.
Product Liability Insurance - protects you and your business against any claims stemming from injuries,etc. resulting from the use of your product.
Is Your General Liability Insurance Coverage limit set high?
Covered claims are paid up to the maximum limit you set for the policy period. Often times the limits are issued in increments of $1MM. People are often surprised by the minimal cost to increase limits.
