The cost of general liability insurance varies greatly depending on the business or industry. For example, freelance contractors deal with fewer people than convenience store owners. Similarly, the construction industry pays the highest rates, as it often works on other people’s property. This article will cover the basics of this type of insurance. But don’t let that scare you away from purchasing the policy.
Covers claims of bodily injury
General liability insurance is an essential part of your business insurance plan because it covers bodily injury and property damage that can occur to third parties as a result of your business activities. This coverage protects you against claims of negligence when a third party is injured as a result of your business activities, whether they occurred on your property or off. This insurance is also important if you deal with customers outside of your business or produce or distribute products. If a customer slips and falls at your business’s premises, you may be held responsible for their medical bills.
In addition to paying for physical damages caused by your business activities, general liability insurance protects against liability for business operations and non-professional acts. This coverage also covers claims of emotional distress. It also provides compensation for damages to a person’s reputation. The policy pays for medical care and legal fees if a person sustains bodily injuries in an accident caused by her business activities. However, general liability insurance policies are more comprehensive than their counterparts, and you can opt for a policy that meets your needs.
Property damage
General liability insurance covers third-party property damage. For example, a landscaper’s policy might cover a stone that breaks a customer’s window. This type of policy also covers products and completed operations, such as selling a product that damages another’s property. In cases of negligence, general liability insurance can provide significant financial protection. Below are some examples of what this coverage covers. If you need insurance coverage for property damage, it’s important to know what it covers.
When you purchase general liability insurance, check the policy for any gaps. Some policies only cover bodily injury, and others cover property damage. If you have a higher limit, you can consider purchasing umbrella insurance. It also provides a higher limit on liability insurance. Property damage liability insurance is a must for any business to protect its assets from being drained by one unfortunate customer. In some industries, the risk of a property damage claim is greater.
Personal injury
A General Liability insurance policy covers an organization, business, or person against bodily injury and property damage claims. This type of insurance also includes coverage for employees, volunteers, officers, and affiliated organizations. This type of policy can cover a wide range of expenses and losses, including medical bills, legal fees, and reputational damage. Therefore, it is highly recommended that businesses carry this type of insurance.
Typical commercial general liability insurance policies include coverage for both bodily injury and advertising injuries. Bodily injury coverage pays for medical expenses related to an accident, and it can also pay for claims that result from infringing copyrights. In addition, this type of policy will cover the damages to leased property and advertising. The amount of coverage will depend on the amount of coverage and the limits for each occurrence. For instance, a painter may fall off of a ladder, resulting in a bodily injury claim.
Advertising injury
If you run a small business and a television commercial, you may wonder if advertising injury is covered under general liability insurance. Advertising injury coverage protects you against claims for disparaging another company or making false or misleading statements. It also covers infringement of copyright, trade dress, and slogans. The following are some situations where advertising injury coverage may prove beneficial. Here’s a simple example: Your competitor creates a jingle for a popular cleaning service. You create a billboard featuring the same jingle, but the copy is not true. Your competitor then sues for libel or copyright infringement. Your advertising injury coverage will cover these claims and your legal expenses.
In addition to personal injury claims, advertising injury insurance can protect you against legal fees and settlements for injuries caused by your advertisement. These claims can include copyright infringement, invasion of privacy, slander, libel, and wrongful eviction. Your insurance will also cover legal costs and potential payouts for claims brought against your business or employees. However, your advertising injury coverage may not cover all kinds of advertising injuries.
Medical payments
You may be wondering if medical payments are covered by general liability insurance. In short, yes. This type of insurance often overlaps with health insurance and personal injury protection. Health insurance typically pays for medical expenses, but some policies exclude injuries that occur during car accidents. Medical payments cover medical bills that you incur when someone gets hurt on your property. This type of insurance can cover out-of-pocket expenses, so read your policy carefully to understand the details.
If you are not liable for a minor medical claim, Medical Payments coverage can reimburse you. Medical Payments coverage reimburses third parties for their reasonable medical expenses irrespective of fault. Medical Payments coverage is automatically included in your general liability insurance policy and pays claims promptly. This type of insurance is a definite hedge against lawsuits, and it is also helpful if you own or rent a property. This type of coverage is not just for property owners, however; it can be used for any kind of liability-related expenses.