You may not be fully aware of the relevancy of general liability insurance to your business but it would be fair to say that it could be considered as one of the most purchasing decisions you make on behalf of your business.
If you want to talk to someone and discover why general liability insurance is such an essential aspect of your business planning you can find out more at einsurance.com, meanwhile, here is a look at some of the key aspects of coverage.
If Someone Is Injured on Your Premises
Accidents can and do happen, and if someone is injured on your business premises it could leave you exposed to a lawsuit and a claim for compensation for their injuries.
If a person was to make a bodily injury claim against your business it could have a huge impact on your financial standing if the claim was successful and damages were awarded.
General liability insurance is designed to provide a layer of protection and help cover the costs of a claim made against your business.
Resolving a Reputational Issue
A comment made about a rival business or an alleged incidence of slander could prove costly to your business and you will want to defend yourself against that sort of allegation.
General liability covers the issue of reputation harm and is aimed at covering the cost of resolving a claim.
At some point, you may have to defend a property damage claim and if a third party visits your business premises and is subsequently injured during their time there you could be facing a legal claim for damages.
General liability insurance offers you the protection you might need to defend a claim and cover the legal costs you might incur in doing so.
It may not be immediately apparent what this aspect of coverage means when you are reviewing general liability insurance details but it is something you will be glad to have if your business is accused of copyright infringement.
If your business runs an advertisement that someone else then claims infringes their copyright protection they might seek to take legal action against you for damages to their reputation and the infringement itself.
Even when the alleged incident does not have any real basis as far as you are concerned you may still have to defend a claim which is where general liability insurance will provide a financial safety net to help cover the cost of defending your business.
If You Are In Rented Premises
Another scenario where this type of insurance could prove invaluable is when you are in a rented commercial building and the property is damaged by something out of control such as a fire or an explosion.
What About Medical Payments
Another aspect of this coverage that is worth highlighting is when someone is injured at your business premises and there are medical costs to be paid.
Your insurance should cover these medical costs.
Using General Liability Insurance to cover all the Bases
It is always advisable to check with your insurance provider to clarify exactly what is covered when you arrange this form of protection for your business.
You can often find that it is perfectly possible to combine your property insurance with general liability coverage so that you have a contingency plan to deal with many different potential scenarios where your business could otherwise be vulnerable if a successful claim is made against the business.
This Insurance is a Requirement
When you are negotiating contracts with potential clients and suppliers you might find that some of these businesses will insist that you have the right level of insurance before agreeing to a contract.
It is a regular request when discussing contract terms and the potential business partner might be concerned about advertising lawsuits or simply wants to know that you can deal with a claim if one is made by a third party.
Speciality General Liability Insurance
The type of industry you are operating in and the potential risks your business faces on a consistent basis could mean that you should be thinking about arranging coverage that goes beyond the basic general liability policy terms.
For example, your business might be exposed to high hazards and unique risks that go beyond the usual incidents that can prompt a claim being made.
You might even discover that if the risk factor is notably high that not every insurance provider will be willing to offer the insurance cover you need.
If you believe that your business is exposed to activities that can be considered as high hazard risks it is highly advisable to point this out when you are discussing insurance with your broker as they may have to place the deal with a more specialist insurance provider.
Is It The Law
There is a big difference in doing what you consider to be right and sensible compared to the following legal requirements.
When it comes to general liability insurance it is worth pointing out that this type of coverage is not normally mandatory but it is best to check in your area as some states do insist on coverage if you are applying for professional licenses.
Even if this type of insurance is not required by law in your state it still makes sound sense to protect your business in this way.
It is easy to become confused when reviewing various insurance products and when you have mandatory insurance such as workers’ compensation, for instance, you might think that would be enough to see you through a claim with help from your chosen insurer.
A good rule of thumb when you are looking at arranging liability insurance coverage would be to work out how you would cope if you had to defend a claim without it and other factors that are highly relevant include the nature of your business and the associated risks.
If you want to protect your business from a challenging financial situation it makes sense to talk to someone about arranging general liability insurance.
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