Key Details About Your Commercial General Liability Insurance
Your general liability policy protects your business from the costs and distractions of property damage or injury lawsuits brought against your business. As you consider your coverage needs, keep the following details in mind.
Coverage for Bodily Injury Claims
Some entrepreneurs and small-business owners have difficulty imagining a scenario in which their business could be responsible for hurting or killing someone, or for causing someone to suffer an illness or disease. But because accidents do happen and lawsuits are common, GL insurance is one of the most popular types protection purchased by small businesses. These policies pay for medical expenses, funeral expenses, loss of services, and court-awarded compensation if an injury results in someone's death – costs that are typically far too large for an average small business to sustain on its own. Your own employees' on-the-job injuries are not covered, so you may need to consider purchasing Workers' Compensation Insurance as well.
Coverage for Property Damage Claims
No matter how careful your business may be, there is always a possibility that your company's actions – or lack of action – will damage someone else's property or make it unusable. General Liability Insurance is designed to protect your business against the high cost of a lawsuit if someone claims that your business is responsible for physical damage to their property or their loss of the use of that property.
Completed Products Coverage
In general, these commercial policies protect your business against claims related to products and services completed by your business. So if, for example, your company makes a product or provides a service that hurts someone, your legal expenses and any damages will be covered up to policy limits.
Contract Liability Coverage
This type of insurance may also cover liability you assume when you enter into certain types of contracts, including building leases, elevator maintenance agreements, easement-of-license contracts, and ordinance-mandated agreements to indemnify a municipality.
Personal and Advertising Injury Coverage
General liability policies may also cover allegations that your business caused non-physical damages to another person or entity, such as publishing libelous or slanderous information, violating their privacy rights, copying their advertising, infringing on copyrights or brands, wrongfully evicting them, or maliciously prosecuting them.
Liquor Liability Coverage
If your business doesn't manufacture or sell alcohol as a business, but may occasionally serve or distribute it at no charge at company functions, you will be glad to know that your policy may cover your business against lawsuits associated with any liquor-related accidents for which your business may be held accountable.
Medical Expenses Coverage
In the event that an accident on your premises injures someone other than one of your employees, Medical Expenses Coverage provides compensation for the cost of meeting that person's immediate medical needs. Insurance companies typically prefer to cover a small, immediate expense (e.g., an ambulance ride) rather than facing the possibility of having liability for much bigger and costlier problems that result from not providing immediate coverage.