The hard truth is that nearly anyone your business interacts with — vendors, clients, or visitors — can make claims against you. These claims could cripple your operation if you don’t have the right insurance protection.
What General Liability Insurance Covers
General liability (GL) coverage can be offered as a stand-alone policy or as part of a business owner’s policy. The policy safeguards your business’s finances and reputation should a customer or other third party take legal action against you or your employees. Types of claims covered by a GL policy:
- Bodily injury: A third party is injured at your place of business or as a result of work performed away from your business. For example, a customer visits your location, trips on an electrical cord running across the floor, and injures her back in the fall. Your GL policy would cover costs such as the customer’s medical expenses and lost wages, and any court-awarded compensation or out-of-court settlements.
- Property: Your business’s actions result in damage to someone else’s property. For example, an employee damages a customer’s door frame and wall while making a delivery. The GL policy will cover costs to repair the damage. Coverage applies to real estate, equipment, supplies — anything that isn’t owned by the business at fault. In addition, if the owner is unable to use the damaged property until it is repaired or replaced, GL coverage compensates for the loss of use.
Read the Full Article on Liberty Mutual HERE.