An Introduction to General Liability Insurance

If you own a business, whether big or small, you most likely need to find out about general liability insurance. General liability insurance is a type of insurance policy that provides coverage in order to shield your business from the typical liabilities that come about with the normal and routine conduct of your operations. The standard definition says that general liability insurance is an insurance policy that covers claims arising from an insured’s liability due to damage or injury (caused by negligence or acts of omission) during performance of his or her duties or business.

The emphasis for sound general liability insurance has grown in recent years due to the increasingly litigious nature of our society. Before, class action and liability cases were not really mainstream and damages arising from such claims were generally toned down. Nowadays, it is no longer surprising to hear of big or small companies alike going bankrupt due to damage claims arising from damage or injury during the conduct of a business.

In general, liability insurance of this nature seeks to achieve two main things for your business. First, general liability insurance provides a first line of defense against claims. As you transfer the liability to the insurer, the insurer can choose to defend your business against the claims in order to argue whether or not the claim is valid in the first place. This gives your business a safety net in that routine legal action can be taken before the case is settled.

The second purpose is to indemnify which means that you have the right to get coverage up the maximum agreed amount as stipulated in your policy. Suppose a claim is rendered valid and your business is being asked to pay $100,000 in damages with an $80,000 coverage; this means you are only expected to pay the net $20,000 since your insurer takes care of the policy coverage. That can help save your business from total folding if and when you find yourself facing this scenario.

If you truly want to have peace of mind as you go about running your business, securing general liability insurance is a good way to start. Give it some thought to make sure your business interests are well protected as you go about running your daily operations.

Comments: 15

  1. Daphine July 12, 2013 at 2:42 pm

    I am presently within my newbie of LLB program with College based in london(Exterior Programme).

    1. Should i be to pursue a legitimate career in Canada, is my degree recognized?

    2. The number of more many years of studies and pupilage should i have before i am capable of practice like a solicitor/ lawyer in Canada (excluding in Quebec)?

    3. Should i be to help my studies within the legal area (like studying for LLM), given my LLB degree with U of L (Exterior), what options have i got in Canada, or elsewhere ?

  2. Raymond July 15, 2013 at 2:37 pm

    I can not decide whether or not to perform a major in accounting along with a minor in finance

    or perhaps a major in finance along with a minor in accounting. Can one acquire some suggestions about the problem?

  3. Rosy July 24, 2013 at 6:02 am

    My dad-in-law is really a renovator who must renew or purchase general insurance, but he does not have the cash. I am just attempting to help him out so he does not screw themself if god forbid something happen around the jobsite. Thanks.

    Thx mbrcatz! Are you aware if you can purchase general insurance for any quarter of the season if you’re just carrying out a temporary contracting job?

  4. Nolan July 28, 2013 at 12:22 pm

    We repair equipment on customer premises and carry general insurance, including coverage for damage to property and private injuries. We do not carry workman’s comp, only since the repair people (the workers) will also be “officials” of the organization – and our condition enables us to become exempt from transporting it due to that. Thanks.

    Interesting points happen to be made. I’ve further questions now – because the officials use their own individual vehicle (and also have excellent auto coverage), i was relayed through our agent the business ought to be “ok” which business auto is not really necessary, since the business doesn’t own any automobiles. Is that this incorrect? So far as workman’s comp, the officials purchase their very own (excellent) medical health insurance that covers medications, er visits, lengthy-term care, etc. Would any injuries incurred during a customer’s site be covered under that? It’s highly unlikely, because of the character of the things they’re doing they could be hurt. Perhaps a paper cut… or I saw maybe falling from stumbling on the carpet, but nothing associated with the particular work (and that’s why we elected out).

  5. Marcelino July 28, 2013 at 2:48 pm

    I am while opening a college for that fine arts (music, dance and theatre). I am looking to get a listing of expenses together and am curious what it is going to require me to pay for general insurance. We’d have under 10 employees, between 3000 and 4000 sq ft of space and operate mainly M-F 3-9pm and S 10am-4pm. Any help could be greatly appreciated!

  6. Ashley July 29, 2013 at 5:34 am

    Certificates of Insurance was completed as though a business had general insurance so that they might get in a building to get product and fall off product. The insurance provider which was on the Certificate of Insurance filed a proper fraudulent complaint using the Department of Insurance. What may happen to the organization that forged the Certificates of Insurance?

  7. George August 1, 2013 at 3:07 pm

    I’m planning for a walk for that National Seating Disorder For You Association inside a local park. They might require a $a million general insurance for that event. I’m not sure the number of individuals will be coming however i would guess maybe 50 – 100. Does anybody know around just how much this kind of coverage would cost? I’ve attempted to obtain quotes consider my event is not until April I can not have any yet.

  8. Dianne August 6, 2013 at 6:28 am

    I’ll be the only real worker. I’ve heard which i should have insurance which is according to my payroll. Basically pay a sub-contractor for work carried out does he become my worker and shall we be held responsible for his actions at work site? Exactly what does general insurance cover? Exactly what is a insurance audit?

  9. Leonardo August 14, 2013 at 4:00 am

    Does anybody be aware of title associated with a firms that would supply an over-all liability insurance plan for any Temporary Airbrush Tattoo business? I attempted the simple a person’s like Allstate, StateFarm, Countrywide. No luck. Interesting response.

  10. Rima September 11, 2013 at 2:30 pm

    i simply lately began a house upkeep business.ive been investing in vendor applications with assorted property management companies,almost each of them really wants to be listed like a insured individual on my small general insurance certificate. What is the limit to the number of companies that may be policy owners?

  11. Miguel September 24, 2013 at 4:34 am

    I’m attempting to discover exactly what the general range for business insurance could be. Everything I recieve from google searches is links to insurance providers, instead of some reasonable selection of rates. I’d rather not give my title, telephone number, and email to multiple random companies, just to ascertain if I’m able to afford even fundamental coverage.

    So, please, someone let me know what will be a general selection of rates, monthly or yearly, for any home-based pc repair business in Florida. I haven’t got a store, so I haven’t got clients within my office. My annual sales, mostly labor, is all about $30,000.

  12. Rickie October 16, 2013 at 1:42 pm

    I’m working in a task for my Master of business administration class. I’m organizing a small company for that project. It is a cooperative of niche chicken producers. The cooperative marketplaces the chicken to local major merchants and transports finish items (after processing, packaging and storage to store DC’s). I want an estimate for general insurance and insurance on the small chilled truck (driven by someone having a pristine record). I want annual premium estimations that coincide by having an exact policy amount – minimal possible please! Online insurance quoters aren’t working.

  13. Tristan December 4, 2013 at 8:40 pm

    I am on the point of lease a little office personally and my lady. After extended discussions, the owner has agreed but has return he requires us to hold General Insurance. Is the fact that standard within the condition of Florida? It had been my knowning that the landlord’s commercial policy generally covers general liability on his premises. Any ideas?

  14. Jefferson December 10, 2013 at 4:48 am

    I’m self-employed being an administrative contractor. I’ve the chance to land a lucrative contract, however the client has asked for which i have a simple general liability policy. I’ve been to virtually all of the insurance service providers around, and no-one has heard about this type of factor to have an office worker. Any ideas?

  15. Liliana December 17, 2013 at 8:34 pm

    I have to purchase General Insurance to pay for two programs (computer practicing ladies and teaching for kids). Both of them operate at different locations. I’ve been searching but unable to find any quotes.

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