| NYC Business Group
What General Liability Insurance Entails
The majority of entrepreneurs ask themselves what general liability insurance (GL) is? The major reason they aspire to understand what this coverage is is to find out if they indeed need it. Evidently, a liability policy is a basic part of an insurance coverage plan. GL is essential as it compensates claims that your business damage cause to property or bodily injury. This insurance policy is also referred to as general commercial liability insurance (CGL).
You can procure CGL as an independent policy or combine it with other basic coverage with a Business Owner’s Policy (BOP). This blog post will help you discover what insurance policies are at your disposal for your business. Here is the information you need...
What is The Scope of Commercial General Liability Insurance?
GLI coverage protects you from losses that emerge during the normal running of your business. Note that if you don’t protect your business with this type of coverage, you will have to pay the losses from your pocket, which can be very expensive for you and the business. Remember, many businesses lack the resources to cover these costly liabilities.
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What Claims Does General Liability Insurance Coverage Help to Cover?
- Property damage to third-party: for instance, if you or your personnel are offering a service at your client’s premises, your business is at of property damage. So, with CGL, it will cover replacement or repair costs for damages on their property necessitated by your business while delivering the services.
- Reputation harm: your business can find itself in a lawsuit for slander or libel if you or employees said something to ruin their reputation. If you fall into this trap, general liability coverage can assist you in covering your legal fees or cost when defending your business.
- Bodily injury to third-party: if a client slides and falls while on your business premises, they can subject your business to a lawsuit. If it happens, the CGL policy can help you cover their medical bills since the CGL policy comprises bodily injury claims protection.
- Advertising Injury: advertising liability arises when your business is sued for infringing copyright rights. For instance, if you use a photograph for your advert without seeking permission from the photographer who took it.
Advisably, note that CGL doesn’t cover all kinds of claims.
Below are some examples that general liability policy does not cover:
- Work-related injuries. When employees sustain injuries or illnesses while at work, this risk is covered by a workers’ compensation insurance policy. This insurance can assist in covering medical costs and ongoing care expenses.
- Mistakes made in your company’s professional services. These liabilities are covered under a professional liability policy.
- Damage to your business property and commercial property policy covers this risk.
Other Types of Liability Insurance Policies
Apart from CGL, there are other types of insurance policies that you can procure.
- Employment practices liability policy. This insurance coverage covers legal defense fees and compensation if a former or current employee takes you to court for employment-related intimidation, wrongful termination or discrimination.
- Commercial umbrella insurance offers additional protection for your other existing liability coverage to help cover expensive claims.
- Commercial auto insurance protects you and your workers on the road when driving a business vehicle.
- Management liability insurance covers directors and officers who run the business from claims of bad decisions and business policies.
Reasons Why You Must Have Commercial Liability Insurance
Liability claims and risks are common and are sometimes expensive. As a matter of fact, four out of ten small businesses are likely to sink into liabilities claims in ten years. Slides and falls are the most common reason for emergency chamber visits. Notably, on average, the cost of this type of claim is not anything less than $35000.
If the claim gets to a law battle, it increases the amount to more than $7500 for defense and settlements. Therefore, if you lack a general liability policy, you will need to pay the business resources claim, which can put the business in a difficult hole.
Besides, you also require GLI cover before you engage with other companies or businesses. Some businesses may require you to offer a certificate of insurance to prove that you have the coverage
What is the Right Commercial General Liability Policy for Your Business?
Even if every business enterprise is distinctive, each one of them needs GLI coverage. We can assist you in customizing your insurance coverage in order to settle for the right coverage for your business investment. Call Us Today For a Quote!