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.