General Liability Insurance

General Liability Insurance: Your Defense Against Liabilities

The only way to effectively protect the assets of your business from the claims of third parties is to carry adequate Commercial General Liability (CGL) Insurance coverage. General Liability protects your business from bodily injury or property damage for which your business is determined legally liable.

What Does General Liability Cover?

A typical General Liability policy provides coverage for claims of bodily injury or other physical injury, personal injury (libel or slander), advertising injury and/or property damage as a result of your products, premises, or operations, and can be offered as a package policy with other coverages such as, Property, Crime, Automobile, etc.

As a safeguard against liability, General Liability enables you to continue your normal operations while the insurance company defends you against real or fraudulent claims of negligence or wrongdoing. General Liability policies also provide coverage for the cost to defend and settle claims. Additional General Liability coverages include:

• Defense Costs – coverage for legal expenses to defend claims brought against your business, regardless of who is at fault.
• Additional Insured – Coverage is provided for third parties whom you are required to indemnify through written contracts, agreements and permits.
• Coverage limits – are typically quoted per occurrence and aggregate (total coverage limit per policy term)
• Medical Expenses – Provides no-fault coverage for medical expenses if someone is injured on your premises or by your products.
• Products Liability – Provides coverage for bodily injury and property damage sustained by others as a result of your products.

How Much Coverage Does Your Business Need?

The amount of coverage your business should purchase depends on three factors: perceived risk, where you operate your business and the type business you operate.

• Perceived Risk – Consider the amount of risk associated with your business operations and functions. For instance, if you manufacture heavy machinery, you would generally need more coverage as compared to another organization that manufactures tissues. How much damage could your product or operation cause to a third party?
• Location of Your Business – If you operate in a jurisdiction that traditionally awards high damage amounts, you should consider higher limits of liability.
• Type of Business Operation – the more dangerous the product or business operation, the higher the limits of liability needed.