Now that you are shopping for your business insurance, you may find that there is liability insurance coverage on the list of insurance types that you should have. But, what is actually the use of this insurance coverage? And, do we really need this coverage? Keep reading to learn further about this.
What Is It?
When we are talking about the general liability insurance, this is actually the one that can protect us against any non-employee injuries specifically the one that happens at our property. In addition, it also covers any damage that you cause to property owned by someone else.
In other words, this insurance protects you against some of the most general lawsuits which can arise from your everyday business activities. In case your business is prosecuted, and the court case is covered by a general liability policy, at that time your insurance will help you to pay for the legal costs including settlements and attorney’s fees.
What Does It Cover?
General liability insurance coverage includes some common things. Here are some of the things that are covered by this insurance.
Third-party bodily injury
If there is someone who is harmed on your property, your insurance can support you to pay for medical expenses or any legal expense if the person sues your business. For instance, there is a customer who slips on a mopped floor then his leg is broken, your insurance can cover the medical bills of your customer.
Third-party property damage
If there is customer’s property which is damaged at your business, general liability insurance is able to cover the expenses for repairing or replacing the property. For instance, your employee accidentally spills hot coffee to your client’s laptop and it is inoperable after that. Depending on your policy limit, the insurance can cover part or all the expenses to replace the laptop.
Not all customer injuries or property damage happens inside your business’s store. If your business produces, distributes or sells a product, there is a possibility that it issued outside the store. For example, there is a customer purchase and eats your store’s burger and she falls ill after that. Then, she prosecutes your burger as the culprit. Here your general liability insurance coverage can cover any expense related to the legal process.
Slander, libel, and copyright
If a person sues your business over copyright or slander infringement, this insurance can cover expenses for the lawsuit too. For instance, an employee jokingly tweets about your business and you want to use her/him for this because it harms your business. In this case, the legal settlement, defense expense and judgment cost can be covered by the policy.
What Is Excluded from the Policy?
There are some points that are not covered by insurance. Something like employee injuries, professional errors, employee discrimination lawsuits and damage to the business property are not covered by the policy.
That’s all everything you need to know about general liability insurance coverage. Now that you have known how useful it is, you can be confident to shop around for the policy.