General liability insurance is the primary type of coverage that nearly every business requires. This type of insurance is designed to protect businesses when bodily injury or property damage occurs as the result of your business practices. Any business may have both known and unknown risks that can result in a lawsuit or liability claim. If you are insured, a number of related expenses are covered including attorney fees, any damages awarded to the other party, and medical expenses that result from the injury.
Liability includes the responsible of your business to maintain your place of business and keep it safe for customers or clients. Quaker Special Risk explains that “We are experts in Casualty and take pride in being able to find general liability insurance coverage that offers solutions to even the toughest accounts.” Depending on the type of business you have and the way you provide services to your clients, the coverage that you have will need to be flexible enough to cover any potential situation.
Basically, general liability insurance covers anything that you may be “liable” for. That includes injury that occurs on your business property, from using your products, or even from the advertising you use to grow your business. If you accidentally violate another company’s copyright, you can be held liable for damages.
What Isn’t Covered by Liability Coverage?
All types of insurance have some exclusions and liability insurance is no exception. While it is designed to protect your business from claims by customers, it doesn’t typically include injuries that occur to employees. As a rule, employee injuries that occur on the job are covered under worker’s compensation.
The same is true for accidents in vehicles. General liability insurance will not protect you from accidents that occur in your automobile. Only auto insurance will do that, even if the vehicle is used exclusively for your business.
How General Liability Insurance Differs from Personal Injury
When people are injured on another person’s or business’s property, they sometimes file personal injury claims to get compensation for their medical bills, time off from work, and to pay their medical bills. If they can prove that the accident occurred because of the other party’s negligence, they may either settle their dispute out of court or argue the case in a courtroom. Personal injury laws are in place to protect people from the actions or inactions of others.
General liability insurance is designed to protect the business owner and the business when an injury or damage occurs. The people who receive payment for damages rarely are awarded punitive damages for pain and suffering and it doesn’t pay for damages resulting from intentional acts. Personal injury protects the victim of the accident while general liability insurance protects the business.
When choosing a general liability insurance policy, you should take into consideration any unusual risks that may be caused by the products or services you provide. You want insurance that will protect you where your areas of greatest risk exist.