Every Business Should Have General Liability Insurance
If you own either a small or large business you have liability. The possibility that you will be the subject of legal action is greater than that of the average citizen. In a world where people are lawsuit happy, a slip-and-fall is can be the equivalent of winning the lottery for the claimant. It is of utmost importance to protect your assets from both frivolous and authentic claims against you and your business. The best way to do this is to purchase a commercial general liability insurance policy.
The very best way to protect yourself against legal claims is a commercial general liability policy. The CGL is a policy that protects you from claims made against you. It does not protect your personal business property. There is a significant distinction so please don’t be confused. CGL covers you against claims made by others for their own injury that is traced back to your business. With the CGL you are protected not only at your place of business but also at places that you typically conduct business.
Business owners can often purchase packaged policies that include both property insurance and commercial general liability Insurance together. The difference is that the property insurance covers your business property and the CGL covers your liability to others in the course of conducting business. A very typical claim covered under the CGL is the slip and fall claim. Other types of claims might include a slander and property damage claims. A fourth type of coverage in the CGL is liability caused by your advertising practices.
To summarize, there are four major components to a CGL Insurance Policy:
1. Injuries as a result of advertising practices 2. Slander, libel or other personal injury claims 3. Damage to the property of others 4. Physical damage to the bodies of others
A very comforting element of the CGL is legal defense. Most policies cover the cost of defending the policyholder against liability claims. Even if the claim is found to be without merit, defense is covered. This is a major benefit to an insured as the cost to defend even the smallest claim can become astronomical.
The most important aspect of the commercial general liability insurance policy is the financial limits. Please be sure to discuss the levels of coverage with a qualified property & casualty insurance broker to get the most complete information on how best to protect your business.
A commercial general liability insurance policy offers basic liability protection to companies. A products liability insurance policy offers specialized protection required by manufactures, distributors and retailers of consumer goods.