All You Need To Know About General Liability Insurance
General liability insurance is ideal for all businesses; sole proprietors, small and middle-sized enterprises, and big commercial ventures. Given the broad scope of general liability insurance coverage, discerning its applicability can be a hassle. However, the excerpt below should help you understand the basics of a general liability insurance plan.
What Is General Liability Insurance?
General liability insurance is a basic insurance plan for businesses that covers personal bodily injuries or property damage. As a business owner, you can acquire a general liability insurance plan or include other add-on extensions depending on the risks you wish to protect your business against.
For instance, as a manufacturer, in addition to a general insurance liability policy, you could include clauses such as the vendor's endorsement to your policy to cover the vendor who distributes your products to the consumer. However, your premium costs will be higher than those of business owners who do not have extensions to their general liability insurance plans.
Risks Covered by a General Liability Insurance Policy
The risks that general liability insurance covers depend on the industry in which the firm operates. However, the most common risks that a general liability insurance policy covers include:
Third-Party Bodily Harm
General liability insurance will help cover medical care bills for clients who injure themselves within your business premises by falling, slipping, or using your products. Besides, general liability insurance should help you cover legal fees should a client sustain bodily harm in your store and then press charges.
Third-Party Property Damage
Does your business involve operations at another person's premises? Do you do flooring or roofing work, for example? If so, general liability insurance will help you cover repairs or replacement costs if you or your employees cause damage to another person's belongings.
A consumer can sue your company. If this happens, general liability insurance covers the legal costs of defending yourself, your employees, or your products in a court of law.
A third party can sue your company because of actual or perceived damage arising from the advertisement of your business, products, or services altogether. General liability insurance coverage should help you cover legal fees caused by copyright infringement, theft of ideas and false advertisement.
General liability insurance is a vital requirement for all businesses because it offers protection against third-party bodily or property damage. Business owners can also include extensions to general liability insurance to protect their business against specific risks. Contact a company that offers liability insurance to learn more.