General liability insurance is an important part of your overall insurance package to cover the risk of legal claims and compensations imposed on the insured by lawsuits and other claims brought against them by third parties. Liability insurance provides coverage for the insured’s liability to third parties, the insured’s insurance carrier, the insurer of another insured person who is injured in the course of the insured person’s business activities and the risk to property or personal injury caused by the negligence of the insured.
The terms « general liability insurance » and « general insurance » are often used interchangeably, and often the two types of insurance policies are considered as one type of coverage for their customers. Although most people consider general insurance as covering their home or auto insurance, it is actually more extensive than that. General insurance coverage protects the general reputation of an individual or company, its products and services, and the products or services of others who are considered a « substantial part » of the firm’s or the individual’s business.
General liability insurance also includes property, liability for goods sold, compensation to employees for injuries or death caused by the negligence of the employer or the business, and medical payments. General liability insurance helps protect the assets of your firm, but it is also important to protect you from damages that occur at your firm. In order to determine what general liability insurance will cover you, first you need to decide what kind of legal claims would fall into this category. For example, if a claim was made against the owner of a store for damaging someone else’s property in your store or a claim was made against the owner of a factory for injuring a worker in your factory, these are claims that fall under general liability insurance. Once you know the type of claim that falls under this category, then you can determine what type of general liability insurance your company needs.
It is also important to have general liability insurance because it protects your company against any claims which arise out of work-related accidents. If your business produces and sells merchandise to the public, or if you have employees who work in your company’s business, the possibility exists that one of these employees could sue you or your firm for a claim of negligence or other type of claim in relation to their job duties. It is not uncommon for employees to sue their employers in this manner. General liability insurance will help protect your company against this type of lawsuit. by paying for any expenses incurred when an employee files a lawsuit and compensates for lost wages and medical benefits.
You should also consider purchasing general liability insurance if you own or manage an establishment of any kind. An establishment, such as a restaurant, bookstore, bar or even a retail store, is an open structure that allows customers to enter and leave the premises. Anytime a customer feels uncomfortable, they may have a legal right to sue your business over the situation.
One of the common situations where patrons feel uncomfortable is when the food or service they purchased has been substandard or the establishment was not properly prepared. The insurance coverage for establishments provides coverage for injuries caused by the negligence of staff members on the premises. It also helps cover injuries and property damage to patrons as a result of such things as theft. You can include such items as theft alarms, lighting systems and security measures. If a customer feels like their service was subpar, they may file a claim with your company, and your insurance coverage will pay for their claim.
General liability insurance is very important and should be included in all policies, but it is equally important to know that the insurance coverage varies between different companies. In many cases, the liability limits for your business can be significantly higher than the limits for your auto, home, life or health insurance. It is up to you to find the best coverage possible.