What Is General Liability Insurance?
Your company’s general liability insurance (GLI) can help cover claims for physical harm or property damage. Comprehensive general liability (CGL), business liability insurance, and commercial general liability insurance are other terms for general liability insurance (GLI). GLI can be purchased separately or as a component of a Business Owner’s Insurance (BOP) that also contains other crucial coverages.
We are available to help you identify the kinds of business liability insurance that your company could need. We can help you learn what general liability insurance covers or get a quote for general liability insurance.
What Does General Liability Insurance Insure?
Expensive claims might surface throughout routine corporate operations. These expenses are partially covered by liability insurance. If you were uninsured, you would have to pay for these general liability insurance costs out of your pocket.
Claims that your business may have contributed to may be partially covered by a liability insurance policy:
• Third-party bodily injury: A customer may file a lawsuit against you as a business if they are injured after falling and slipping in your store. The bodily injury liability coverage under your insurance policy might pay a portion of their medical expenses.
• Property damage to third parties: If you or any of your employees operate at a client’s house, your business runs the risk of causing property damage. In the event that your business damages someone else’s property, property damage liability insurance can help with replacement or repair costs.
• Reputational harm: A person may sue your business for defamation or libel as a result of comments you or your employees made. General liability insurance could help cover your business’s legal costs if this happens.
• Damages from advertising: Your business could be the target of copyright infringement claims. Photographers have the right to sue you if you utilize their images in your ads without their consent.
Recognize that not all types of claims are covered by liability insurance. For instance, it disputes the assertions made by your group that:
• Illnesses or accidents sustained by employees on the job, for which workers’ compensation insurance may provide financial assistance. This insurance might pay for some of their ongoing medical expenses and care costs.
What Sorts of Policies Cover Liability?
In addition to GLI, the majority of insurance companies recommend the following extra liability insurance policies: • Commercial umbrella insurance provides additional limits over and beyond those of some of your current liability plans, helping to cover expensive claims.
• Employment practices liability insurance may help cover your legal defense costs as well as settlements or verdicts if a former or current employee files a lawsuit alleging harassment, discrimination, or wrongful termination related to your employment.
Insurance for management liability protects your company’s directors and executives from costly lawsuits.
• Commercial auto insurance contributes to your and your employees’ safety if you drive a vehicle for business.
Why Is Insurance Required for General Liability?
Costly and frequently are liability claims. In 10 years, four small businesses will probably be the target of a liability claim. The most common reason for trips to the emergency room is falls and slips.1. This type of claim typically costs $35,000.
In the event of a lawsuit, the average cost of defending and settling a claim can exceed $75,000. If you could only afford these costs out of pocket with liability insurance, your business might fail.
It may also be necessary to obtain liability insurance before working with other businesses. Certain employers may demand a certificate of insurance, also known as evidence of insurance.
Is “Why is liability insurance important, and what does it cover?” still on your mind? To find out more, get a quote.
Which General Liability Insurance Kind Is Most Appropriate for My Kind of Business?
Though each company is different, all can benefit from having general liability coverage. We might work with you to customize your insurance so that the levels of coverage you require are suitable for your business.
We have more than 200 years of experience and have helped more than a million small business owners. To answer the question, “What is general liability coverage?” we can help. Our professionals can help you navigate the claims process, get a quote, and identify which general liability class code applies to your business. Our staff routinely receives the best ratings for client satisfaction in general liability insurance reviews, so you can feel secure knowing that we’ve got your back.
