What is General Liability Insurance?
General Liability Insurance or GLI, also commonly goes by the name of Commercial General Business Liability. This insurance policy is put into place to protect the assets of a company. It also pays for medical costs and associated obligations that may occur if someone becomes hurt at your business or if any injuries or property damages are caused by employees or the business owner.
General Liability Insurance is a protection that every business owner needs to have. In the event of your business or employees being sued, liability insurance will cover legal defence costs and the payout of any award or settlement if you are sued successfully. Items covered include: punitive damages, non-monetary losses and compensation for damages.
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Liability Insurance for Tenants
If you rent a commercial or residential property, liability insurance can protect you in the event that damage occurs to your rental. Covered loss including fire damage is big one. Most accidents are indeed accidents; however, the cleanup and subsequent damages resulting from any injury or damage need to be addressed. General Liability Insurance helps to ensure that these needs are met responsibly and that you won't lose your business, home or reputation if something unforeseeable occurs.
Lastly, GLI can cover harm occurring from copyright infringement, verbal slander, written libel or false advertising.
Any reputable insurance company or licensed broker will be able to provide you with quotes; similar to insuring your home or vehicle. General Liability Insurance is based on your particular kind of business and the risk associated with it. For example, a Scuba Diving Outfit will likely pay significantly more than a Graphic Designer. The location of your business can drastically influence how much coverage you have available and how much you will pay. As with any kind of insurance, there are high risk and low risk factors taken into consideration prior to a quote being arranged.
Being Prepared for Worst-Case Scenario
Your GLI policy will showcase the maximum money the insurance company will pay in the event of a liability claim. Communicate with an experienced broker to determine if your business gets sued that you will have enough coverage for legal costs and medical fees. Be prepared to pay the difference if your insurance maxes out and your subsequent costs are higher. As this can be devastating for any individual or company, it is imperative to ensure you have the right amount of coverage. One injury or lawsuit could potentially end everything if you are not properly prepared.
Increasing Your Coverage Limits
Some places offer umbrella insurance or excess insurance options. This enables you to increase coverage in case a situation occurs where you are concerned that your existing coverage will not suffice in the event a claim is filed against you and subsequently won. Many contractors will not be considered for particular bids unless they secure additional umbrella coverage. Prior to accepting any job or signing any policy, it is vital to read the fine print to ensure that you are operating in the safest and most responsible manner possible.