In the modern society, a little accident can result in 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 a person though injury or property damage.
General liability insurance can be purchased independently or within a BOP (Business Owners Policy). A SMALL BUSINESS Owners Policy packs liability and property insurance right into a single policy. The liability insurance coverage limits, however, are often quite low. Businesses needing a larger coverage usually buy liability insurance being an independent policy.
In a general liability insurance coverage, legal costs of a business in a covered liability lawsuit have 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 companies also cover general and compensatory damages. However, liability insurance policies do not cover punitive damages, as they are deemed punishment for deliberate actions.
General liability plans always declare a maximum amount that insurers need to give during the policy period. Beneath the policy, gleam maximum amount that the insurer has to pay per occurrence. For example, if a company has a $1.5 million occurrence cap and loses case of $2 million; the insurance provider is obligated to cover just the $1.5 million; the rest needs to be paid by the business enterprise company.
As a cover against these kinds of circumstances, companies buy umbrella liability insurance, which makes 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 report to the insurance company when an accident that can result in a liability claim has taken place. The business owner will then have to assist in the investigations, forward legal notices, etc. general liability insurance