Have you ever found that something you’ve taken for granted was actually a treasure? Perhaps an old watch? Or a collectable lunch box? What about an insurance policy?
Commercial General Liability Insurance benefits nearly every business, and it’s usually one of the first policies business owners purchase. Most people know about its ability to cover third-party bodily injuries or property damage. In fact, in some circles, the policy is called “slip-and-fall insurance" because it covers you if a guest slips and falls on your premises.
But did you know that Commercial General Liability can cover even more than that? Here are six reasons why your GL policy might be a lot more valuable than you previously thought.
1. Medical Expense Coverage
Sure, the policy can cover you when somebody sues after they trip and fall in your office building, but it’s better to try to prevent a lawsuit in the first place. That’s why most Commercial General Liability policies include medical expense coverage, which pays for the cost of immediate medical attention when someone other than one of your employees is hurt on your commercial property. It can pay for the ambulance ride, the doctor’s bills, and more. The hope is that if the immediate medical bills are paid for, the injured party may not sue you later on.
2. Completed Products Coverage
Does your company make a product? Whether you make cookies or cookie cutters, you are liable for the physical harm your products may cause. If you're sued over such an injury, a Commercial General Liability policy with Products-Completed Operations coverage can pay for the legal expenses. This goes for completed services too, so long as the claim doesn’t fall under the jurisdiction of Professional Liability or Malpractice Insurance.
3. Advertising Injury Coverage
A General Liability policy doesn’t just cover physical damages your business might cause. It can cover advertising injuries too, such as lawsuits over slander or libel, violation of privacy rights, and copyright or brand infringement. For example, this can come in handy if someone claims your local TV commercial illegally used their music or if you end up saying some rather insulting things about a competitor on your business's social media page.
4. Contract Liability Coverage
If you enter into certain types of common contracts, your GL policy may cover the liability that your business assumes. These contracts include building leases, elevator maintenance agreements, easement-of-license contracts, and ordinance-mandated agreements to indemnify a municipality. It’s added liability, but liability that’s covered!
5. Liquor Liability Coverage
No, you can’t turn your accounting firm into a speakeasy at night (you’ll probably need separate Liquor Liability Insurance for that). But as long as your business doesn’t manufacture or sell alcohol, the limited Liquor Liability coverage your Commercial General Liability policy has may be enough to address the liability you take on when serving up booze at business events. This coverage steps in if your business is sued because one of your employees had too much to drink at the office holiday party and hurts someone.
6. Coverage for More Than Just You!
General Liability Insurance can cover more than just you. It can provide full or limited coverage for your business partners, executive stockholders, directors, subsidiaries, employees, contracted vendors, new acquisitions, and volunteers. You might have to set this up before you purchase the policy, but know that the coverage exists if you need it.
Be sure to review your General Liability policy with your insurance agent to ensure it has all the extras you want for your small business.