General liability insurance prevents financial losses that can threaten the company you've worked so hard to build. Here are a few ways that this insurance protects you from the risks of operating a business. Don't hesitate to follow up with your Wiseman Insurance agent about what you need to do to get the right coverage.
How General Liability Insurance Safeguards Your Business Assets
General liability insurance helps you pay others in the event an accident in your business harms them. It covers many claims that arise as part of your normal business operations. Covered accidents might include bodily injuries and property damage caused to others. It also handles nonprofessional negligence.
General Liability Insurance In Action
Here are a few examples of situations in which your general liability insurance could protect you:
- While shopping at your hardware store, a customer falls over a loose floorboard and breaks her shoulder. She blames you for the damage.
- An employee in your construction company leaves a customer's home without turning off the water, causing considerable damage to the property. They might want you to pay up.
- A class-action lawsuit accuses your business of misleading statements on its ads. You have to respond.
Your Wiseman Insurance agent can help you determine what type and how much insurance you need to respond to each claim. The coverage might pay not only for restitution for those affected, but also for legal fees your business might incur while responding.
Types Of General Liability Insurance
There are three main buckets of general liability coverage.
Coverage A - Bodily Injury And Property Damage
Coverage A handles property damage and bodily injury claims due to nonprofessional negligence. It also pays for covered risks arising from normal business operations. Bodily injuries may include emotional and mental distress.
Remember that general liability insurance may vary from vendor to vendor. Your agent can help you understand what options can fully protect your business.
Coverage B - Personal and Advertising Injury
Coverage B covers both personal and advertising liability issues such as:
- False arrest
- Malicious prosecution
- Copyright infringement
- Wrongful eviction
- Invasion of privacy
These are mistakes that, while not necessarily physical might cause harm to someone else. That is why you must proactively work to avoid the risk of such things happening.
Coverage C – No-Fault Medical Payments
Coverage C pays for medical expenses due to an accident not caused by fault of the business. Covered accidents occur on your business premises or at a location where you or an employee conducts business operations. However, the accident can simply be the result of an accident. Medical payments claims do not require legal action to kick in. They often provide an opportunity for settlement without going to court.
This portion of general liability insurance pays for:
- Reasonable medical and surgical expenses
- Ambulance expenses
- Hospital stays
- Nursing care
- Funeral expenses
Also called no-fault coverage, coverage doesn't apply to cases where the business might be at-fault. Therefore, the coverage under sections A and B don't have coverage under part C.
To learn more about how general liability insurance can benefit your business, talk to your Wiseman Insurance agent today.
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