Business General Liability Insurance

A business is all about planning and executing the plans. However, even the best of the best plans can go haywire when accidents happen. Accidents can happen onsite, offsite, with customers and with employees. To handle this, the best business plan must include business general liability insurance.

Business general liability insurance will protect a business against attorney fees, damages and medical expenses that it is liable for. Depending on your business needs, at its various stages, you would need different types of coverage. A reliable and reputable provider will be able to help you obtain the best policy.

What is Covered?

Most known and even unknown risks of a business are generally covered by business general liability insurance. It covers the business, its owner, and the employees against property damage, bodily injury, court judgments, litigation and out-of-court settlements. Other things that the policy covers are alcohol related accidents (office party) and advertising injuries (copyright violations, misleading or false ads, slander and libel). If the business is renting its premises, the policy will cover any damage to the property.

What is Not Covered?

  • The business general liability insurance is not an overall cover for all the liabilities. Worker compensation (paid to an employee who is hurt while on the job) is not covered under such a policy.
  • Professional liability is also not covered by the policy. Any professional service you offer such as your advice, opinion, solution or recommendation, is not covered by this insurance.
  • Business general liability insurance policy will not cover your business for damages to leased or owned vehicles or to the personnel in the vehicle.
  • With some exceptions, punitive damages due to a lawsuit are not covered by this policy.
  • Any intentional or expected act resulting in injuries or damages will not be covered by the general liability policy.
  • Any work that would fall under the company’s warranty will not be covered by the policy.

Coverage Needs

The coverage need of a business is determined by three factors:

  • Type of business
  • Perceived risks related to the business
  • Business location

A business with low risk can go for a business owner’s policy, which includes property insurance and general liability. Since the general liability coverage portion of this policy is limited, high-risk businesses cannot benefit much from this policy. A high-risk business can get umbrella or excess insurance in addition to its business general liability insurance to get more cover for its needs.

Liability Insurance Related Articles