General Liability Insurance

 

What Is General Liability Insurance?

General liability insurance, sometimes called commercial liability insurance, is a type of insurance coverage that commercial entities, as well as non-profits, purchase in order to protect themselves from a range of potential liabilities caused by their everyday operations. As the name implies, it provides coverage for a wide range of potential liabilities and is typically one of the most important types of insurance for any company to have in place.

General liability is the most important type of insurance for organizations because it helps to protect the organization from a range of potential issues that can arise from their normal business operations. It helps to protect the organization from financial losses should they be held responsible for any liabilities that arise from third party claims or lawsuits. With general liability insurance, the organization is covered for a range of potential liabilities, including claims of personal injury and/or property damage due to a covered event, products or services that were sold, and contractual liability.

While general liability insurance can help to protect a company and its assets from potential liabilities, it is important to remember that it does not provide coverage for everything. It does not protect a company from any sort of professional liabilities that arise from errors or omissions from their products and services, or from any losses due to dishonest or criminal acts nor does it provide coverage for punitive damages.

General liability is a type of insurance that is purchased by many kinds of businesses, including large corporations, small businesses, and non-profits. For larger businesses, it is often included as part of a business owner’s policy, and these policies may also include 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 stand-alone policy, and there are also special endorsements that 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 to protect the organization from potential financial losses should they be held responsible for any liabilities that arise 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 operations of the organization.

• Property Damage - Coverage for claims of damage to another person’s property due to an accident caused by the operations of the organization.

• Personal Injury - Coverage for claims of non-physical injury, such as slander, libel or false advertising, due to the operations of the organization.

• Products or Services Liability - Coverage for claims stemming from products and services that are 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 in the event that employees use their own vehicles for company business and cause an accident.

It is important to note that general liability insurance does not provide coverage for business interruption insurance, professional liability insurance, or any type of losses due to criminal or dishonest acts.

 

Who Should Have General Liability Insurance?

General liability insurance is an important type of coverage for any business or organization. Even small businesses, non-profits, and sole proprietors should have at least a basic and cost-effective general liability policy in place. This type of coverage is extremely important for any business that interacts with customers and clients, or that provides products or services. Even in industries where it isn’t required by law, it is a smart 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 stand-alone coverage for smaller businesses 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 a range of 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, it is important to find a policy that provides the right amount of coverage for your organization’s unique needs. This can be a challenge, as the premiums and coverage 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 that specializes in business insurance. They can help you to compare quotes from multiple insurers and will have the expertise to help you find the right insurance that meets your specific needs.

 

Conclusion

General liability insurance is an important type of coverage that can help to protect businesses and organizations from a range of 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 important type of coverage for any business or organization, and businesses of all sizes should ensure that they have the appropriate coverage in place.