What a General Liability Insurance plan May cover for Your Business
Businesses are responsible for the safety of their employees, customers, and visitors. They must protect themselves from liability when someone is hurt or loses something because of an accident on their premises. But this task would be challenging if there is no policy to cover these risks.
Thanks to a commercial general liability policy that can assist firms and businesses in safeguarding themselves against such risks. It helps business owners have peace of mind knowing that they will not be held liable for any accidents on their premises. This article, therefore, will explain what a general liability policy covers and how it may benefit your business.
What general liability insurance policy covers?
Bodily injury
This includes bodily injuries that happen to people who contact your business. It also covers damages caused by your business’s products and operations. For example, if you have a building and construction company, you should consider getting a general liability policy that covers bodily injury claims related to your work.
Such injuries can be caused by falling objects, slips, trips, and collisions. This type of coverage is vital, especially if you do not have worker’s compensation insurance. Besides, it helps ensure that your business does not face financial losses due to lawsuits brought by injured parties.
Property damage
Property damage is another term used to refer to physical loss or damage to other people’s property. Examples include theft, fire, vandalism, and water damage. If you own a retail store, you need to get a general liability policy that protects your property from being damaged by thieves. The same applies to other types of businesses as well. However, some policies only provide limited coverage for property damage. Therefore, it is essential to read the fine print before signing up for one.
Advertising injury
Advertising injury refers to instances where your business is accused of causing harm to others through false advertising. An example of this could be if you falsely claim that your product is safe or effective. In such cases, you may be sued for defamation. You may also be required to pay legal fees to defend yourself. Thus, it is crucial to make sure that your general liability policy offers enough coverage for your advertising injury needs.
Copyright infringement
Copyright infringement refers to situations where you use someone else’s intellectual property without permission. This could mean using someone else’s logo, slogan, or design without authorization. There are many ways in which copyright infringement can take place. Some examples include:
- Using images or text taken from another website without permission
- Copying content from another person’s book, magazine, or newspaper
- Making copies of music, movies, or software
If you run a business that uses copyrighted material, you should make sure that you have enough protection for your intellectual property. This includes ensuring that your general liability insurance covers copyright infringement.
Reputation harm
Reputation harm refers to instances where your reputation has been harmed. This could be because of negative reviews about your business posted online. Or, it could be because you have been accused of doing something illegal. Whatever the case, you will want to make sure that your business has sufficient protection against reputational harm.
Products liability
Products liability refers to situations where your business sells defective or dangerous products. These can be anything from food to clothing. A good example would be if you sell a faulty chair that causes an accident. In such cases, your business may be held liable for any resulting injuries. As a result, you should make sure that your general insurance policy covers products liability.
Court judgments, costs, and settlements claims
A court judgment is an official ruling made by a judge after a trial. A settlement is when two parties agree on how they will resolve their dispute out of court. These events are covered under a general liability policy. However, there are certain exclusions that apply. For instance, most policies exclude coverage for personal injury claims, punitive damages, fines, and criminal charges.
General liability insurance plan: conclusion
In a nutshell, a general liability policy is tailored to secure your business from lawsuits. It does not matter whether you operate a small home-based business or a large corporation. All that matters is that you have a policy in place that adequately covers all of your potential liabilities.
