Liability insurance is a key piece of an insurance plan. general liability insurance (GLI) can help cover claims that the business has essentially caused injury or property damage. This inclusion is also called general corporate liability insurance (CGL). One can get the GLI as a standalone strategy or bundle it with other key additions with a Business Owner Policy (BOP). We are here to help one understand what insurance inclusions the company may require.
What does general liability insurance cover?
General liability insurance helps to cover costly cases that may arise during normal business activities. In case one doesn’t have the inclusion, one would need to cover these general liability insurance costs using cash on hand, and very few organizations have the assets to do this. A general liability insurance strategy can help cover the guarantees the company has incurred:
- Substantial Outsider Injury: If a customer is injured after slipping and falling into the store, they can sue the business. The insurance strategy incorporates the inclusion of liability for property damage, so one can help cover the expenses for medical appointments.
- Property Damage by Outsiders: If one of the representatives works in a customer’s home, the business is at risk of property damage. Including property damage liability can help cover repair or replacement costs if the business damages someone else’s property.
- Reputation Damage: Someone could sue the company for criticism or defamation because of something one of the representatives said. If this happens, general liability insurance can help cover the legal expenses to protect the business.
Liability claims are not new and can be expensive. Truth be told, 4 out of 10 independent ventures will likely find a liability guarantee within the next 10 years. Slips and falls are the main sources of visits to trauma centers. The normal expense for this type of guarantee is $35,000. If a case generates a claim, he can increase his normal expense to more than $75,000 to protect and settle. Without general liability insurance, the business would need to pay for these expenses with cash on hand, and this could lead to bankruptcy.