General liability insurance, or commercial liability insurance, is a policy that is designed to protect your business long term. General liability insurance provides your business with solid financial coverage against property damage, faulty advertising, and physical injuries. These pose risks for damage that might be caused by your business operations, services, or employees.
It is important to remember that any damage to your own personal property is not included in general liability insurance coverage. It is a policy covering third-party law-suits, such as customers or business partners. It also provides you with protection if you accidentally cause any damage or injure a third-party, like a client or customer.
Simply knowing that you need a commercial general liability insurance coverage is not enough. To understand what commercial general liability insurance covers, you need to understand how it protects the assets of your company and how much coverage your business needs.
Why Do You Need General Liability Insurance Coverage?
As a business owner, you need to accept liability when an unpreventable accident occurs. You cannot control the unforeseen, general liability insurance can provide you with best business protection plans. Apart from providing peace of mind against unexpected risks, it covers the cost of investment, attorney fees, legal fees, court costs, and expenses related to settlements and court judgements. Therefore, it acts as your legal defense if you are found liable for the accident, thus mitigating the negative impact of any lawsuit from your business.
What Is Covered with General Liability Insurance?
1. Protection Against Physical Injury or Property Damage
If a client comes into your office and suddenly slips on the wet floor, you might be found liable for their physical injury. However, if you are found liable for the injury, general liability insurance will cover you for any financial losses. General liability insurance would also offer complete protection in case of any property damages caused to others, which can be due to non-professional negligence acts either by you or your employees.
2. Protection Against Medical Expenses
General Liability insurance provides limited medical coverage. You can utilize it for making payments to any third-party who has sustained an injury either on your office premise. Even though legal action isn’t necessary, the coverage is provided on a no-fault condition of the insured and includes payments for all medical expenses.
3. Protection for the Tenants
If you are insured with commercial liability insurance, you would be safeguarded against the liability of any accidental damages to your rented property by a tenant.
4. Protection Against Advertising
In the digital world, it is not unlikely to become the target of negative comments on social media platforms and review sites. Alternatively, if you have indulged in any such activity against your competitors, there is a possibility of being sued by them on the grounds of virtual offense and reputational damage. Advertising liability is a part of the commercial general liability insurance coverage it protects the insured in case of following charges:
- Slander, or misrepresentation of the reputation of some individual or company by delivering false statements orally
- Libel, or deliberately publishing false statements to damage the reputation of an individual or organization
- Copyright or trademark infringement
- Breach of privacy
- Copying the advertising idea of another company and using it without their permission or consent
What is Not Covered by General Liability Insurance?
There are various kinds of liabilities that are not covered by general liability insurance. The exact list of exclusions can vary greatly per the policies purchased. This is a list of liabilities that are not generally covered by general liability insurance:
- Employee medical expenses if employees or subcontractors are injured on the job
- Damage to property and vehicles are owned by your business
- Worker’s compensation
- Liability arising out of a mistake committed by you or your employees
- Failure to protect sensitive or personally identifiable information
Additional Liability Coverages That You Can Consider
General liability insurance can be purchased as a part of the Business Owners Policy (BOP) or as a Commercial Package Policy (CPP). If your business operations are intertwined and complicated, you may consider buying some additional policies to enhance your coverage scope. Some of the policies that you can consider buying are:
- Directors and Officers liability offers complete protection to the directors of any company for the damages arising out of their wrongful deeds.
- Liquor liability insurance offers protection against liability and injury caused by the patrons of your business under the influence of alcohol.
- Pollution liability insurance offers protection against the environmental liabilities for industrial and agricultural property owners.
- Professional liability insurance offers financial coverage for the professional negligence of your business partners and employees.
Get the Best Liability Insurance Advice: Consult With CREST
At CREST Insurance Group we analyze the needs of your business through the careful study of three aspects: the nature of your business, the location of your business, and it’s associated risks. If you don’t know where to start, simply seek the expert consultation of our specialized insurance agents today. We will not only assess your insurance needs as per the perceived risk categories, but we’ll also provide you with an insurance policy that maximizes your coverage limits.