What Does Business General Liability Insurance Cover?

2007-03-08 10:33:40

( Insurance )



Business general liability insurance, also known as general insurance, covers your company from an array of damages and injuries that sometimes result in a lawsuit. The amount of coverage that a company should obtain will depend on whether the business has a high risk of being sued. The amount of coverage will also depend on whether the state you belong to is reputable in awarding a high amount of money for damages to a plaintiff.

Under business general liability insurance, the insurance company must pay you for any claims that are a result of property damage or bodily injury. Coverage includes the cost of hospital and other related care, the payment of the professional services of a healthcare provider and death related body injuries. A business general liability insurance policy also provides a property owner compensation for any physical damages that are caused to the company’s property and an even higher compensation amount if the property can no longer be utilized.

Business general liability insurance can also extend coverage for any liabilities that result from entering into building lease contracts, elevator maintenance contracts, indemnity agreements, which are related to a city ordinance and any easement of agreement in licenses.

If your company becomes involved in a lawsuit as a result of false advertising that is caused by libel, slander, or copyright infringement, business general liability insurance can normally provide you with protection in this instance.

General auto insurance can also be endorsed into your general liability insurance to provide coverage against any damages or accidents incurred when the company rents a car.

If your company is not in the liquor manufacturing business, business general liability insurance can protect your company for any liquor-related accidents that occur within the company’s premises, for as long as your company was not selling liquor when the accident occurred.

Finally, when another party files a lawsuit against your company, legal defense costs can be covered by this type of insurance. This can include lawyer’s fees, witness fees, any fees for obtaining police reports, court expenses and the like.

Business general liability insurance can be bought as part of a business-owner’s policy; however, you typically get a lower coverage amount for any liability coverage. It is therefore strongly recommended that separate general liability insurance be considered.

You must note that when purchasing business general liability insurance that these policies will cover you only up to a certain limit. Your company pays for any amounts that exceed this limit. As a result, most companies that purchase general insurance policies also purchase an umbrella liability insurance policy to protect the company from any other general liabilities not covered by the general insurance policy.


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