General Liability Insurance: Liability Insurance a Business Must Have

Running a business in a litigious society requires you to be well prepared for claims due to your business operations. Even though you have been really careful in running your business, you cannot expect to never receive a claim. Injury or property damages that occur to others as a result of your business operations can result in a claim. In fact, facing a claim from third parties can be costly. If you should pay a costly claim, you should use your cash in which this will ruin your cash flow. Thus, you need general liability insurance.

What is general liability insurance? This is liability insurance that protects against accidents that occur to third parties as a result of your business operations. If you or your employees often visit clients’ place of work, have access to clients’ equipments, write or speak about clients’ business, use third party location to carry out your business activities, or are required to have general liability insurance before entering an agreement, you need to have general liability insurance. Specific coverage offered by general liability insurance includes:

Bodily Injury

Even though you might be difficult to imagine that your business operations could cause a serious injury or death to a third party, it is actually possible. There are always some unexpected and unwanted things that happen in life.  However, if you know that claims for bodily injury caused by your business operations are covered by liability insurance, you will likely have peace of mind. In this case, general liability insurance will pay for medical care costs, loss of services, and court awarded compensation for deaths that are caused by a bodily injury.

Property Damage

There is always a possibility that your business operations could damage third party’s properties even if you have been really careful in carrying out your business operations. In some cases, your business operations might cause other people unable to use their property. If these conditions occur, your liability insurance can compensate for physical damage to the property or loss of use of the property.

Products Completed Operations

Your general liability insurance normally provides protection to services or products completed by your company. Your policy would pay for legal expenses and damages from an injury that is caused by something that is manufactured or by a service that is provided by your company.

Contractual Liability

General liability insurance would cover liability that you probably take when you enter easement of license agreements, building leases, elevator maintenance agreements and agreement to cover a municipality.

In order to get maximum benefits from general liability insurance, you will need to have the right coverage. In this case, there are at least three factors that determine the right coverage for you. They are the type of business that you have, the perceived risks that are associated with the type of your business, and the location of your business. The riskier the business, the wider the coverage is. Therefore, if you would like to get full business protection, you had better consider buying general liability insurance.



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