One of the critical components of your business insurance is your general liability coverage. It’s there to help you when someone who doesn’t work for the business alleges that you caused them harm. When it comes to your company’s overall risk management, reputation and financial security, this is a critical benefit that you cannot be without.
Though general liability insurance is very expansive, it also has its limits. It’s specifically designed to cover the most common liabilities that most businesses face, and often you will need other supplementary liability policies alongside this coverage.
Let’s look at the situations where a claim on your general liability policy might prove worthwhile.
1. Bodily Injuries
Any time you interact with customers, there is a chance that you might accidentally cause them to get hurt. Though you certainly didn’t intend for the accident to happen, the fact that it did still might obligate you to pay for the customer’s medical bills, lost income and other costs. There are injury threats in every business, from dangerous machinery to wet floors and head injury risks. It’s up to you to implement all necessary precautions when you notice that an injury risk is present.
2. Property Damage
If your business provides care or service for someone else’s property, then you might accidentally do more harm than good. For example, you might be a house painter, and while painting someone’s bedroom, you wind up spilling paint all over their carpet. As a result, you might have to pay for their damage, and if the cost is significant, then liability insurance can help you do so.
3. Personal Injuries
There are times when someone might allege that you libeled or slandered them, promoted false advertising or committed copyright infringement. At this time, the legal costs of fighting this claim might be significant, so it is important that you have the resources to fight back.
4. Product & Completed Operations Liabilities
The products or services you provide might wind up harming someone. For example, if you run a bakery, then nuts in one of your recipes might give someone an allergic reaction. Or, if you are a plumber, then you might think you completed a job successfully, but several days later, the client’s pipe bursts and floods their home. In either scenario, it might be your company that is on the line to pay.
Though your general liability insurance can be beneficial in all of these scenarios, you still might face considerable liabilities that won’t have, but still merit, appropriate coverage from insurance. That’s why you might need to augment your general liability plan with errors & omissions, directors & officers, umbrella liability and other industry-specific benefits. Our agents are committed to helping you find those solutions.