Is it time to file a claim on your business insurance policy? You may be asking how general liability insurance works as you prepare to purchase a new policy, too. In all cases, you should know what’s covered and how to get financial help when you need it. Your agent is your best tool for immediate support. Yet, here are some key guidelines.
What Is General Liability Insurance?
General liability insurance is a type of business insurance. It covers a specific type of risk, but one many, even all, businesses face. It helps to cover losses other people suffer as a result of the actions or inaction on the part of the company. When a third party (a customer, client or stranger) files a claim against you, this policy can help. It helps with property damage, advertising injury or personal injury of these individuals. It does not cover employees. It also does not cover the owner’s losses.
Why Do You Need This Protection?
The average cost for a customer claim for slipping and falling was $20,000 in 2015, according to Insurance Journal. That’s just one type of liability risk you face as a business owner. With general liability insurance, you get financial support to help when accidents and claims like these happen. It can help you with, depending on your policy details, things like:
- Paying for the medical bills of the individual who suffers the loss.
- Covering lost time at work for that individual.
- Minimizing losses companies have if you infringe on their copyright.
- Cover claims for misleading advertising.
- Provide coverage for property losses or damage others suffer.
- Aid in paying for settlements or judgments in a court of law.
- Covering your legal defense in a claim that goes to court.
Most often, if someone suffers an injury, your policy provides a payment that covers their losses. It might help you even prevent the case from going to court. Yet, this can happen. Having a legal representative working on your side is critical in keeping your business functional.
Customizing Your Policy
Your policy may cover a wide range of risks. Yet, it is important to know what those coverage types are. Your business insurance agent can help to customize your plan to meet your risk factors. For example, you may need more coverage than a basic general liability insurance policy offers.
Work with your business insurance agent to get a policy that covers most of your risks. Doing so can give you the confidence you need to operate your company.
Also Read: When Does Workers Compensation Insurance Apply