In the modern society, a small accident can result in protracted and potentially money- sapping lawsuits. General liability insurance, therefore, becomes a necessity for some companies. general liability insurance General liability insurance protects a company’s assets when it’s facing case for damages it may or may not have inflicted upon an individual though injury or property damage.
General liability insurance can be bought independently or as part of a BOP (COMPANIES Policy). A SMALL BUSINESS Owners Policy packs liability and property insurance right into a single policy. The liability insurance plan limits, however, are often quite low. Businesses needing a larger coverage usually buy liability insurance as an independent policy.
In a general liability insurance coverage, legal costs of a business in a covered liability lawsuit must be paid by the insurer. Covered liability claims include property damage, bodily injury, accidental injury and damages from false advertising, also known as advertising injury. Insurance firms also cover general and compensatory damages. However, liability insurance policies do not cover punitive damages, as they are deemed punishment for deliberate actions.
General liability plans always declare a maximum amount that insurers need to give through the policy period. Under the policy, there is also a maximum amount that the insurer has to pay per occurrence. For example, if a company includes a $1.5 million occurrence cap and loses a lawsuit of $2 million; the insurance company is obligated to cover just the $1.5 million; the rest should be paid by the business company.
As a cover against these types of circumstances, companies buy umbrella liability insurance, which makes the picture where general liability coverage stops. It covers payments that exceed the company’s policy’s limits and provides extra protection for liabilities not covered in the typical insurance policy.
Generally, there is a requirement for the policyholders to are accountable to the insurance company when an accident that can lead to a liability claim has taken place. The business owner will have to assist in the investigations, forward legal notices, etc.