What Is General Liability Insurance?
General
liability insurance, sometimes called commercial liability insurance, is a type
of insurance coverage that commercial entities and non-profits purchase to protect themselves from a range of potential liabilities
caused by their everyday operations. As the name implies, it covers a wide range of potential liabilities. It is typically one of the most
important types of insurance for any company to have in place.
General liability is the most essential type of insurance for organizations because it helps to protect the organization from a range of potential issues that can arise from their everyday business operations. It helps protect the organization from financial losses should it be held responsible for any liabilities from third-party claims or lawsuits. With general liability insurance, the organization is covered for potential liabilities, including claims of personal injury and/or property damage due to a covered event, products or services sold, and contractual liability.
While general liability insurance can help protect a company and its assets from potential liabilities, it is essential to remember that it does not cover everything. It does not protect a company from professional liabilities arising from errors or omissions from their products and services or any losses due to dishonest or criminal acts, nor does it provide coverage for punitive damages.
General
liability is insurance purchased by many businesses,
including large corporations, small businesses, and non-profits. For larger
companies, it is often included as part of a business owner's policy, and
these policies may also have additional coverage, such as property
insurance, business interruption insurance, and employment practices liability
insurance; for smaller businesses, general liability insurance is often sold as
a standalone policy, and special endorsements can be added
to the policy to provide additional coverage, such as coverage for rental
vehicles and medical payments. For non-profits, general liability insurance is
usually sold as a standalone policy and is often referred to as non-profit
liability insurance.
What Does General Liability Insurance Cover?
General liability insurance is designed to provide protection from a range of potential liabilities that could arise from the everyday operations of a business. It helps protect the organization from potential financial losses should it be held responsible for any harm from third-party claims or lawsuits. Some of the liabilities covered by general liability insurance include:
• Bodily Injury - Coverage for claims of bodily injury due to an accident caused by the organization's operations.
• Property Damage - Coverage for claims of damage to another person's property due to an accident caused by the organization's operations.
• Personal Injury - Coverage for claims of non-physical injury, such as slander, libel, or false advertising, due to the organization's operations.
• Products or Services Liability - Coverage for claims stemming from products and services provided by the organization.
• Contractual Liability - Coverage for claims arising from contracts that the organization has entered into.
• Hired and Non-Owned Auto Liability - Protection if employees use their vehicles for company business and cause an accident.
It
is important to note that general liability insurance does not cover business interruption insurance, professional liability insurance, or any loss due to criminal or dishonest acts.
Who Should Have General Liability Insurance?
General liability insurance is an essential type of coverage for any business or organization. Small businesses, non-profits, and sole proprietors should have an important and cost-effective public liability policy. This type of coverage is necessary for any business that interacts with customers and clients or provides products or services. Even in industries where it isn't required by law, it is an intelligent risk management decision to have it in place.
For larger businesses, it is typically included as part of a business owner's policy, and it can also be purchased as standalone coverage for smaller companies or as non-profit liability insurance for non-profits.
How Much Does General Liability Insurance Cost?
The cost of general liability insurance varies based on various factors, such as the size and type of business, the industry and risk profile, the deductible amount, and the limits of coverage purchased. Generally, general liability insurance premiums can range from a few hundred dollars per year for small businesses to tens or even hundreds & thousands of dollars per year for large businesses.
How to Find the Right General Liability Insurance
When shopping for general liability insurance, finding a policy that provides the right coverage for your organization's unique needs is essential. This can be a challenge, as the premiums, cov, image types, and limits can vary significantly from one insurer to the next.
The best way to find the right general liability insurance for your organization is to work with an independent insurance agent or broker specializing in business insurance. They can help you compare quotes from multiple insurers and will have the expertise to help you find the right insurance that meets your needs.
Conclusion
General liability insurance is an essential type of coverage that can help protect businesses and organizations from various potential liabilities. It provides financial protection should the organization be held responsible for any liabilities that arise from third-party claims or lawsuits. It is an essential type of coverage for any business or organization, and companies of all sizes should ensure they have the appropriate coverage.
