In the modern society, a little accident can lead to protracted and potentially money- sapping lawsuits. General liability insurance, therefore, becomes a necessity for most companies. General liability insurance protects a company’s assets when it’s facing case for damages it could or might not have inflicted upon an individual though injury or property damage.
General liability insurance can be purchased independently or as part of a BOP (Business Owners Policy). A SMALL BUSINESS Owners Policy packs liability and property insurance into a single policy. The liability insurance coverage limits, however, are usually quite low. Businesses needing a larger coverage usually buy liability insurance as an independent policy.
general liability insurance In a general liability insurance coverage, legal costs of a small business in a covered liability lawsuit need to be paid by the insurer. Covered liability claims include property damage, bodily injury, accidental injury and damages from false advertising, also called advertising injury. Insurance firms also cover general and compensatory damages. However, liability insurance policies usually do not cover punitive damages, because they are deemed punishment for deliberate actions.
General liability plans always declare a maximum amount that insurers have to give through the policy period. Beneath the policy, gleam maximum amount that the insurer must pay per occurrence. For example, if a company has a $1.5 million occurrence cap and loses a lawsuit of $2 million; the insurance provider is obligated to pay just the $1.5 million; the others needs to be paid by the business company.
As a cover against these kinds of circumstances, companies buy umbrella liability insurance, which comes into the picture where general liability coverage stops. It covers payments that exceed the company’s policy’s limits and gives extra protection for liabilities not covered in the standard insurance policy.
Generally, there is a requirement of the policyholders to are accountable to the insurance company the moment an accident that can lead to a liability claim has had place. The business owner will have to help in the investigations, forward legal notices, etc.