Liability insurance is the one type of business insurance that can be used to protect your operations in the event of a lawsuit. It’s also called general liability insurance because it protects you in all situations except for workers comp, auto, and health care (separate types of coverage).
If you own or operate a business that could result in someone suing you, it’s important to have this type of coverage. Why? Well, because if your company is found liable for an accident, whether it’s your fault or not, this type of insurance will help pay for damages associated with the accident.
For example, if someone slips on the water in your store and breaks their arm because you failed to clean up the spill quickly enough, then they would sue you because they’re claiming that it’s your responsibility to keep your store free of hazards like slippery floors.
If they’re successful in their lawsuit against you, they’re awarded $10,000 in compensation for medical bills and lost wages during recovery time.
To get a quote, you need to answer a couple of questions about the nature and risks associated with your business.
The insurance company will use this information to calculate how much money they would need to pay out should something happen.
A general liability insurance policy is a contract in which one party agrees to pay for losses incurred by the other party in the event of a certain type of incident. It is designed to protect you from lawsuits, property damage, and bodily injury that might happen on your premises.
In general, these are the most important types of coverage: Commercial General Liability (CGL) and Professional Liability Insurance.
Commercial General Liability covers unintentional or accidental bodily injury or property damage that occurs on your premises.
This includes any medical expenses resulting from an accident happening at your business location.
1) Bodily Injury (BI) Coverage: BI coverage protects the insured company from liabilities arising out of bodily injury or property damage to others.
2) Personal Injury (PI) Coverage: PI coverage pays for injuries to anyone on the insured’s premises up to $1 million per person, with a total limit of $3 million per occurrence.
Professional Liability Insurance protects you against claims made against you for professional work-related mistakes, omissions, errors, or negligent acts.
The purpose of general liability insurance is to protect these things from arising claims if something goes wrong- whether it’s a customer slipping on ice in front of your store or a vendor.
General liability policies cover a company against various lawsuits and claims for damages incurred by the company.
Some policies may also cover additional types of incidents, e.g.:
- The cost of the environmental cleanup if your business has polluted a waterway or otherwise damaged the environment
- The cost of defending yourself in court against personal injury or property damage claims
Why Is General Liability Insurance Necessary?
The purpose of general liability insurance is to protect your assets and income from lawsuits and legal claims.
This type of insurance can be helpful for any business, but it is essential for small businesses. Why? If your company doesn’t have the capital to cover the cost of large lawsuits, an insurance company will provide it.
If you are considering purchasing general liability insurance, make sure to look into what is covered under the policy.
General liability policies typically cover property damage, bodily injury, and personal injury. To find out more about the specifics of your coverage, you should speak with an agent who understands your needs.
For example, if you rent out space in your store or build things on-site that could cause harm to others, this would likely require additional types of coverage. By understanding what is required by a general liability policy before purchasing one for your business, you can determine if it’s worth investing in one at all.
Costs of a General Liability Insurance
General Liability Insurance is a type of insurance that protects the company from potential lawsuits, including those which might arise from injuries to people or damage to property.
It is a common misconception that general liability insurance coverage automatically includes protection for when employees injure themselves on the job. However, this protection needs to be purchased separately in what’s known as Employer’s Liability coverage.
The type and level of general liability insurance coverage needed by a business depend on its size and location, how risky the company is in potential lawsuits, and how much it can afford to pay if something happens.
If you are involved in a situation that requires you to file a claim, contact your insurance agent as soon as possible. You can also talk with your insurance provider directly, but using an agent will help ensure that all the information is collected and transferred correctly.
Gather documentation regarding the incident. You need to give your insurance agent as much information as possible, including pictures of the damage, receipts for damaged property, and detailed estimates for repairs or medical expenses.
You should also keep copies of any legal documents or pertinent emails related to the claim. Make sure that you have all this information available when you talk with your agent so she can assess the situation and begin investigating on your behalf.
When filing a claim with general liability insurance, you need to provide the following documents:
- Proof of loss (photos, receipts, medical bills)
- The police report (if applicable)
- A copy of your general liability policy
- The model number and serial number for any damaged equipment
- A list of the items that were lost or stolen
One of the reasons general liability insurance is so popular is that it covers many different types of claims. A slip-and-fall accident in a retail store, a dog bite that occurs while the pet owner is at home, and even a vehicle accident can be covered under a general liability policy.
Trying to decipher who’s at fault for an accident can be tricky. If you’re filing a claim with your general liability policy, you’ll have to do some investigating to determine precisely what happened.
Step 1: Look for witnesses
The first thing you’ll need to do is talk to any witnesses who may have seen the incident take place. Write down their names and contacts if possible. If there may also be security camera footage from nearby businesses, you can review it and send it as proof.
Step 2: Gather your records
Compile any relevant medical bills or information about lost wages you suffered as a result of the incident. This information can help demonstrate the extent of your losses and help support your claim.
Step 3: File a claim with your insurance company
After you’ve gathered all the necessary information, call your insurance company and file your claim. You’ll likely be asked to provide copies of any records or evidence you collected during the investigation process. Your insurance representative will then review
Difference Between Business and Personal Coverage
Business coverage is the insurance company’s coverage for any business liabilities. This includes liability protection and workers’ compensation.
Personal coverage is the coverage that an insurer provides to protect you and your family members against specific risks such as fire, theft, and medical expenses.
Business coverage:
– Eliminates the risk of loss due to a lawsuit or injury against your business
– Protects the company from various types of liability such as product defects or worker injury
– Provides legal defense in case of a lawsuit against the insured organization.
Benefits:
- Protection for employees and key personnel
- Protection from lawsuits, fines, penalties, and court judgments from accidents at work or on company property
- Workers’ compensation benefits if an employee is injured on company property or duty.
Tips for How to Find the Best General Liability Insurance
A general liability insurance policy protects you from financial loss arising from claims of bodily injury, property damage, or personal injury to others caused by your business.
The best way to find the best general liability insurance for your business is to speak with an agent. They can help you compare rates, coverage, and deductible amounts.
You should keep in mind a few things when choosing a liability insurance policy for your business.
The first is how much you’ll have to spend because insurance premiums always depend on the risk level. One of the most critical decisions is what type of insurance to purchase when starting a business. How much you’ll have to spend because insurance premiums always depend on the risk level.
The second is what kind of coverage you want. Do you want only limited property coverage, or do you want full protection? Your budget and needs will help determine which one is better for your company.
The third consideration is what kind of deductible do you want?
Special Coverage for Your Unique Business Needs
A few things can make your general liability insurance more unique. For example, you might need additional coverage for your employees or if you rent out space in your business.
Employers are often required to carry worker’s compensation insurance, which provides compensation for injured employees on the job. This type of policy covers medical costs and lost wages, so this type of coverage must be included wherever applicable.
If you have employees who don’t have worker’s compensation insurance, you need to purchase general liability insurance with an “employee” rider.
If you rent out space in your building to someone else-perhaps a doctor, or dentist – then you may want to invest in “rental property” coverage. This will protect your business against any lawsuits filed by people injured at the rented property.
Why Should I Consider Getting Additional Coverage?
The insurance industry is very competitive. Most companies are vying for the same customers, so it can be hard to differentiate yourself. What sets you apart? Your expertise or your trustworthiness? How about both?
Getting additional coverage can go a long way in proving that you are an expert in your field and that your clients can trust you with their future security. Here are some of the benefits of getting additional coverage:
- The Insurance Marketplace (TIM) provides an online comparison tool that can help make choosing a policy easier. They also offer information about the various types of policies available to help customers make an informed decision.
- When shopping for life insurance, it’s essential to know how much coverage is enough and how much is too much for your budget (TIM).
When Do You Need a General Liability Coverage Policy?
In the event of a lawsuit, damages caused by your employees, or injuries on your property, general liability coverage will pay for any legal and court fees as well as any necessary repairs. It’s important to know if you need this type of insurance before purchasing a policy.
If you’re not sure, try to answer your agent these five questions:
– Do you have employees?
– Do you rent out space?
– What type of work do you do?
– Is there anything dangerous on the premises, such as chemicals, dangerous machinery, or animals?
– How much property damage is your business likely to cause per year?
The more information you can provide about your business, the better idea an agent will have about which form of coverage is best for you.
Conclusion: What to Expect When Filing a Claim with General Liability Insurance
General liability insurance can be your best friend. It will protect you and your company from potential lawsuits and other financial consequences of injuries or property damage suffered by others.
Your business needs to have the right insurance. It’s about more than just protecting your assets with coverage.
It’s also about having the peace of mind to know that if something goes wrong, you are covered.
You need to know that your business is protected as a business owner. General liability insurance protects your company from damage or injury that could occur on your premises or at your business’s place of work. It also covers damages that your employees may cause.
As seen in the previous sections, there are many ways to achieve quality insurance coverage with your business. However, it is up to you to find what is suitable for your company based on your needs and available budget.