Starting a business venture comes with a lot of risks, and it’s always wise to protect yourself and your company from unforeseen circumstances. This is where general liability insurance comes in handy. It’s a crucial coverage that protects businesses from financial losses that may arise from bodily injury, property damage, and other related claims. However, what does general liability cover, and is it suitable for your business? Let’s find out.
General liability insurance is a type of coverage that protects businesses from third-party claims. A third party is anyone who isn’t an employee or a member of the business. It could be a customer, vendor, visitor, or anyone else who comes into contact with the business. General liability insurance covers a range of claims, and here are some of the most common ones:
If a third party sustains an injury while on your business premises, general liability insurance will cover the medical costs, including ambulance fees, hospitalization, and other related expenses. It also covers the legal costs that may arise if the third party files a lawsuit against your business.
If your business causes damage to someone else’s property, general liability insurance will cover the repairs or replacement costs. It could be something as simple as accidentally spilling coffee on a customer’s laptop or damaging someone’s car while making a delivery.
Personal and Advertising Injury
This type of coverage protects your business from claims that may arise from libel, slander, copyright infringement, and other related offenses. For example, if your business gets sued for using a copyrighted image on your website or for making false statements about a competitor, general liability insurance will cover the legal costs.
Products and Completed Operations
If your business manufactures, distributes, or sells products, general liability insurance protects you from claims that may arise from injuries or damages caused by the products. It also covers any claims that may arise from services that your business provides.
If a third party sustains an injury on your business premises but doesn’t want to sue you, general liability insurance will cover the medical costs. This type of coverage is optional, and you can choose to add it to your policy.
General liability insurance is a crucial coverage that protects businesses from a range of claims. However, it’s important to note that it doesn’t cover everything. It’s always wise to review your policy carefully and understand the limits and exclusions before purchasing it. Additionally, you can always consult with an insurance professional to help you choose the right coverage for your business.
With general liability insurance, you can have peace of mind knowing that your business is protected from unexpected financial losses that may arise from third-party claims.