General Liability Insurance
General liability insurance is an important type of insurance for businesses of all sizes. It provides protection against claims arising from injuries, property damage, and other common risks. Liability insurance can help to cover the cost of medical expenses, legal fees, and damages awarded to the injured party. It can also help to protect businesses from the financial losses that can result from a lawsuit. While the exact coverage varies depending on the policy, general liability is an important way to reduce the risk of financial loss associated with common business risks.
General Liability Insurance
Understanding General Liability Insurance
General Liability Insurance, along with property and worker’s compensation insurance, is essential for most companies. Liability insurance protects the assets of a business if it is sued for something it did or could have prevented to cause an injury or property damage.
• General liability insurance can be purchased separately or as part of a business owner’s policy (BOP). A BOP bundles property and liability insurance into one policy, but liability coverage limits are generally pretty low.
• Businesses that need more coverage typically purchase liability insurance on the side for additional coverage.
The amount of coverage a business needs depends on a couple of factors:
• Business owners should first consider the amount of risk associated with their business.
• Businesses that operate in states with a history of awarding high damage amounts to plaintiffs typically need to carry liability insurance with higher coverage limits.
How General Liability Works
Covered liability claims include bodily injury, property damage, personal injury, and damage from slander or false advertising. The insurance company covers compensatory and general damages. General Liability does not cover punitive damages because they’re considered to be punishment for intentional acts. General liability insurance policies state a maximum amount that the insurer will pay during the policy period.
Many of our customers purchase umbrella liability insurance, which picks up where their general liability coverage ends. Umbrella liability covers payments that exceed their other policy’s limits and provides additional coverage for liabilities not covered in a standard liability insurance policy.
Most insurance companies require their policyholders to report as soon as possible any accidents that could lead to a liability claim.
Steps to lower the chance of a liability insurance claim:
As with all insurance, you should make sure you have all the coverage you need before signing on the dotted line. KeyInsurance.com will assist you with all of your business owners policy needs!
Having a limited liability business insurance policy from one of our insurance companies offers you the confidence to take risks that will help you grow your firm. We can help you get there, whether you’re just getting started or you’re looking to expand your workforce. Click here to learn about Limited Liability Insurance
