Should you be buying general liability insurance for your business?
It is a legal requirement for some businesses to operate. It is usually written into the contracts accepted by manufacturers and wholesalers. The coverage protects the buyers and sellers, but that’s not all.
It covers some of your business operations. It covers the things you did and didn’t expect but also protects you from unexpected occurrences.
But what does general liability cover?
Read on to know more about some general liability coverage examples and what it covers to ensure your business.
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How Does General Liability Work?
It covers a business for claims arising from damages that happen because of business operations. Like property damage, personal injury, and advertising injuries. It doesn’t cover claims arising from faulty products or services, professional malpractice, intentional acts, or workers’ compensation.
It covers the business for claims brought by third parties. The policy pays for the cost of defending the business in court and for any settlements or judgments.
Personal Injury and Advertising Claims
It covers the costs of personal injury caused by your business to third parties. It does not cover the business itself, or the business owner’s assets.
This type of insurance protects business owners and operators from claims alleging that they caused someone else physical harm or financial loss. It also covers businesses against claims of false advertising, libel, and slander.
Property Damage
Most business owners buy this insurance to cover third-party claims for property damage. This type of insurance protects your business from damage to another person’s property resulting from your business operations.
For instance, if you are a consultant and you damage your client’s computer while installing new software, your CGL policy would pay for the cost to repair or replace the computer.
Not All Third-Party Claims
Most business owners assume that it will protect them from all third-party claims. Unfortunately, this is not always the case. There are many other types of third-party claims that are not covered.
These include intellectual property infringement, defamation, and false advertising claims. If you are facing any of these, it is important to speak with an experienced attorney, if it’s within your coverage. Or you can check out this site for different kinds of business insurance to help cover your business needs.
What Does General Liability Cover?
Getting protected from unforeseen circumstances in businesses is essential. That’s why Liability insurance is vital for any business. It can protect your business from claims arising from injuries, property damage, and more. Getting protected from unforeseen circumstances in businesses is essential. That’s why Liability insurance is vital for any business. It can protect your business from claims arising from injuries, property damage, and more.
What does general liability cover? General liability insurance can cover a wide range of risks, making it a smart choice for businesses of all sizes.
Speak to an insurance agent today to learn more and get covered.
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