General Liability Insurance
Insurances are more and more popularized due to the financial protection they provide when unexpected and undesirable things happen. An insurance coverage is essential to people and to businesses because it covers financial losses which are inevitable to occur.
General Liability insurance is a commercial insurance type that is designed to protect the assets of a business by covering financial losses resulting from any bodily injury or property damage caused by the company or its employees to third parties. This type of insurance policy covers accidents which takes place within the business premises and other areas which a company conducts business. It is applicable in cases of theft , damage to computers, destruction of office furniture and other properties, nonetheless the coverage is subject to certain limitations. However, general liability coverage does not apply to damage-causing errors that take place during any delivery of professional service to the customers.
A company may purchase a General Liability coverage separately or as part of the business-owner’s policy. More often, businesses purchase liability insurance separately when the need for more coverage is required. The amount of larger coverage may depend on the risk factor and the state where the business operates. The risk factor is the amount of risk that is associated with the nature of the business. For example, a business which involves in heavy machinery manufacturing has greater risk of accidents and of being sued than a company which distributes consumer goods. Some states are in the practice of awarding high damage amounts to complainants or the aggrieved party. This necessarily means that if you happen to belong in any of these states, you need to purchase liability insurance with higher coverage limits.
The scope of general liability insurance coverage may vary according to the needs or situations of the business. There are a few liability insurance options which a business can choose from. A business may opt to purchase Personal and advertising injury, employment practices liability, medical expenses and tenant’s liability.
Personal and advertising injury covers liability resulting from any offensive activity done by the company or its employees, which neither involves physical injury of property damage and isn’t a result of any accident. This liability option covers offenses such as false arrest or imprisonment, wrongful eviction, libel, slander or violation of copyrights law, invasion of privacy either through written or spoken statements and unauthorized use of an idea in advertising.
Employment practices liability provides protection to an employer against legal claims made by its employees or former or potential employees on the grounds of discrimination, sexual harassment, discrimination, invasion of privacy, breach of contract , emotional distress , wrongful termination and wage and hour law violations.
Medical expenses liability covers medical expenses of anyone who is injured within the business premises. This liability pays for the medical expenses for the injury inflicted to third parties as a result or in relation to the business operation.
Tenant’s liability covers any damage resulting from fire, automobile impact or other reasons which takes place in the premises rented or owned by the business. This insurance type pays for the costs of rebuilding the premises damaged.