What Does General Liability Insurance Cover?
As a business owner, you should protect your operations with general liability insurance. General liability insurance provides a financial safety net for various unpredictable incidents. You may never have to use it, but you will be thankful to have it if you do. Over one-third of all general liability claims result in a lawsuit—and it costs, on average, more than $75,000 to defend and settle a general liability claim suit. With the right policy, you can limit out-of-pocket costs if you face a claim or suit.
What General Liability Insurance Covers
General liability insurance typically includes the following coverages:
1. Third-party bodily injury coverage may help pay for medical bills if someone is injured in your place of business.
2. Third-party property damage coverage may help pay for expenses if you or your employee damages someone else’s property.
3. Libel, slander, copyright and advertising injury coverage may help cover defense costs if you are sued for harming a third party’s reputation or making false claims.
Depending on the insurer, other forms of liability, such as product liability, may be included under a general liability policy.
Examples of Uses for General Liability Insurance
There are many ways a general liability insurance policy can be used. What types of claims may or may not be covered are unique to your policy. Always review your policy with your agent to fully understand what may be covered. The following are two examples of ways general liability insurance may be able to be utilized:
1. Property damage lawsuit—If your business provides a service, such as catering, and a chafing station starts a fire, damaging the table and wall behind it, the venue may sue your business for damage. Your general liability insurance may help cover the costs of the property damage claim.
2. Slip and fall incident—If someone slips and falls on a spill in your place of business, they may pursue a lawsuit against you to cover their medical bills. Your general liability coverage may help cover this type of bodily injury claim.
How Much Does General Liability Cost?
The cost of general liability insurance varies from business to business based on the following factors:
- The type of business
- The claims history of the business
- The size of the business
Discussing your general liability insurance needs with a qualified insurance provider is essential. They can help ensure you have the right coverage for your organization.
General Liability Insurance in Leesburg, VA
Contact the professionals at Academy Insurance Agency Inc. to learn more about the benefits of general liability insurance.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: General Liability Insurance