From the perspective of commercial coverage, general liability insurance is a great way to protect your business from unexpected claims brought during the regular conduct of your business activities. As much as you want to foresee any potential issues that may arise as you go about your business obligations, there are times when issues slip under the cracks resulting in untoward incidents that can put your business in harm’s way. Considering the litigious nature of today’s society, these momentary slips can very well lead to business closure if the court rules that you pay all damages and claims pertaining to a specific complaint.
General liability insurance ensures that you are not left on your own in dealing with these claims. Like all types of insurance policies, general liability insurance provides commercial coverage to address complaints and claims arising from your company’s liability in the normal conduct of everyday business. To illustrate, consider this simple example.
Suppose you are running a small construction business in a local area and you signed up to a general liability insurance policy with commercial coverage of up to $150,000. Now, if there is a claim stemming from a workplace incident where one worker was injured requiring serious medical treatment, your general liability insurance foots the bill for these claims in the event that the court rules in favor of the complainant. If the damage amounts to $200,000 for example and your coverage is only $150,000, your insurance company pays for the first $150,000 and your company shoulders the remaining amount. With this policy in place, you are ensuring that you don’t shoulder all claims which can put you out of business quickly.
These types of insurance provide protection where needed so you can focus on doing your work every day without having to worry that any mishap can shut you down. In short, all businesses that are serious with risk mitigation and liability protection should consider getting general liability insurance so they are insulated from the brunt of claims and complaints that arise without notice.
What’s left, in the end, is selecting the best policy that suits your company. For this, you need to properly assess your business risk so you can select the right commercial coverage that suits your needs. If you belong to a risky business like a construction company, you most definitely need general liability coverage. If your business is low-risk such as a postcard printing company, you can bundle liability and property insurance into one so your take care of your company assets without spending too much on insurance.
Think about these considerations carefully because you can never be too prepared with any eventuality. With general liability insurance, you at least have a claim to fall back on.