What is general liability insurance?
General liability insurance can help pay for medical and legal expenses for personal injury and property destruction for which your corporation is legally liable. This liability insurance, also known as commercial liability insurance, guards you and your company from general claims in the event of personal injury and property damage. Almost all companies need liability coverage.
What does this security cover?
This liability insurance helps to cover costly losses that may occur in the regular course of business. general liability insurance usually covers claims for personal injury and property damage caused by your products, services, or transactions by you and your company. It can also give you protection if you are responsible for any damage to the landlord’s property.
What claims does this protection cover?
- It includes third-party injury. Your coverage policy covers personal injury liability insurance, so it can help you pay for medical expenses.
- It covers third-party property destruction. If your business damages someone else’s property, property loss insurance can help cover repair or replacement costs.
- It includes reputational harm. Someone can sue your company for slander or defamation because of something you or your employees stated. In this case, liability insurance can assist in covering your legal expenses to protect your business.
- It covers advertising harm. Your company may be sued for copyright violation. For example, photographers can sue you for using their photos in your advertisements without permission.
Its types –
- Commercial umbrella insurance – It gives additional restrictions on top of any of your current liability insurance to cover expensive claims.
- Employment practice liability coverage – If your present or former employees sue you for harassment, prejudice, or unlawful dismissal, they can help you resolve disputes or court decisions.
- Management liability insurance – It guards your officers and directors in your business from expensive claims.
- Commercial auto insurance – It protects your workers and yourself while on the road for business in a vehicle.
Without liability coverage, your company will have to settle for these expenses out of pocket, which may lead to bankruptcy. You may also require liability protection before starting a business with other companies.