A Brief Treatise on General Liability Insurance

What is General Liability Insurance?

General Liability Insurance, also called Business Liability Insurance, protects its holder and his or her business from the claims that involve property damage or bodily harm. It is a necessity for almost every single business out there. You can never predict when a person may get injured due to the direct or indirect actions of your product, employees or actions. Especially in a country which has a suing culture i.e. clients some times go out of their way to find a reason to sue a company in the hopes it will net them a few dollars. If their claims succeed and you are ordered to pay a sum to them, at such a time, General Liability Insurance will save you from going bankrupt and completely ruining your business.

Who needs General Liability Insurance?

As stated above, General liability insurance is a necessity for almost every single business out there that provides a service or a product to its customers which in any way can cause harm to come to them in any given form. Medical malpractice is a common example of professional liability. Every medical professional works under the constant and considerable threat of lawsuits for alleged malpractice. No matter how good a doctor is, sometimes it could happen that a patient dies or has his or her conditioned worsened under their care. It could happen for a number of reasons. The doctor could really have been at fault or it could be just a coincidence. Such cases are mostly dealt under civil torts in USA. Medical malpractice insurance is necessary to offset the costs of such lawsuits. Similarly, Product liability insurance covers almost all products and their associated liabilities.

The scope of protection.

It is best for those seeking General liability insurance to avail the services through a service provider which offers them the broadest protections available. A comprehensive package should not only cover the common elements like personal injury, contractual business liability, property damage; it should also cover other non-trivial elements like your website, social platforms and even blogs. Protection from data breach is also an important element, especially for those firms with absolute demand of cyber security.

The Importance of General Liability Insurance.

Before they agree to hire your services or buy your products, many potential customers wish to see if you have a Commercial General Liability Insurance coverage. It helps build trust in the customer base and they become more relaxed about employing your services. You can show them that you are a professional who has proper insurance backing him. It might also give you an edge over your competitors, thus attracting a larger client base.

Is General Liability Insurance required by the law?

General liability insurance is not required by the law in any state. However, that does not in any way diminish its importance. Breathing is also not required by the law, that does not mean you should stop doing it. There are other forms of commercial insurance that are certainly required though. For example, many states require businesses with employees to purchase workers’ compensation insurance. State laws also outline how much commercial auto insurance coverage a business must purchase.

How much does General Liability Insurance cost?

General Liability Insurance is not such a simple policy. The cost of the policy always depends upon the limits a customer chooses that matches their respective level of risk. Moreover, clients can customize the policy with endorsements that cover specific potential risks. On average, a small to medium size business may take a general policy in which the insurer will pay up to 1 million dollars to cover any single claim.

How to Avoid Liability?

While it is true that having a liability insurance will make you feel secure as well as your customer base more confident, nevertheless, precautions must be taken to avoid liability in the first place. The size of the business does not matter, nor does the nature of the business. An entrepreneur who is just starting out in the business world, and enjoys a small business liability insurance. An old experienced individual who owns a multinational airline, and has deals with multiple commercial insurance companies.

SG Financials Inc. provides you with those guidelines. We can advise you with one-on-one consultations, safety seminars and instructions for installing safety equipment. Through our guidance your business can and will avoid any pitfalls of liability you may find yourself in, all the while maintaining proper integrity.

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