Liability refers to the responsibility that you have for something that involves a third party. However, when it comes to running a business, buying general liability insurance is a must to make sure that you are protected from risks associated to your business operation. Certainly, liability does not only include your company's legal obligations with regards to products, services and money that your business handles, but also the risk associated to damage or injury to third parties.
What General Liability Insurance Covers
General liability insurance protects your business from the risk of loss that results from damage or injury claims resulting from bankruptcy, as an example, that protects business owners by paying the losses included in the coverage. Such coverage usually includes injury damages filled against you as the business owner and expenses for lawsuits, investigations, litigation, and settlements resulting from it, including attorney expenses. In many cases, it includes coverage for liability in business-related activities such as trademark violations in an advertising campaign and other damages stipulated in the insurance policy.
Does this Insurance Cover Your Workers?
When you buy general liability insurance, you are also protecting your business from claims that your workers can file against you if they suffer an accident while attending an office party that you plan. However, the typical coverage of this type of insurance policy includes bodily injury or property damages from a business approach and medical expenses or compensation claims are not included in the policy, or professional liability claims resulting from mistakes made at work.
General Liability Workarounds
While General Liability does not cover claims that your workers file against you, you can take out a worker compensation policy to protect yourself from such claims. Although most insurance companies will not cover intentional acts, punitive damages that may result from a lawsuit or any coverage for items or liability associated to car insurance, which is another insurance policy that you must buy if your business manages a vehicle fleet or assigns cars to employees or business co-owners.
Best Insurance Policy for You
Oftentimes touted as Commercial General Business Liability, the coverage that you need to buy depends on the risk that you can perceive in the operation of your business. Therefore, you can take out the policy with the best conditions after you do research on companies with competitive rates to learn which best fits your needs.
A professional insurance agent may advise you of the type of insurance coverage you need after evaluating your business and help provide you with a quote for your policy from different companies so you can make sure to get the best deal. Insurance agents may also suggest the amount of liability limit so you can reduce the premiums to be paid, particularly if the risk that you are contemplating is really low or improbable to happen.
Once you are certain of the coverage needed, bind it with your agent or directly with the insurance company and review the policy to verify that your liability limits have been set, so you do not have trouble when in need to use your General Liability Insurance.