Operating a properly protected business in this modern era is highly recommended because every business activity has many risks. If a business is properly protected, it can avoid any responsibility that is caused by an injury or damage on their property. Those who get injured and those whose property is damaged by your business activity usually will file a lawsuit. In fact, dealing with a lawsuit is not only costly but also wastes time. Based on this fact, many business operators decide to buy general liability insurance to protect their business.
What is General Liability Insurance?
General liability insurance is coverage that can protect a business from a variety of third party claims caused by personal injury, bodily injury and property damages as a result of business operations. No one surely expects an injury or damage but because it is somehow inevitable, business operators need to be well prepared. However, because general insurance will cover you business, you should not worry about claims or lawsuit related to injury that happens on your site or damages that occur on third party properties. If you are protected by general liability insurance, you can operate your business with peace of mind.
The Coverage of General Liability Insurance
In order to get the best protection, business operators are recommended to choose coverage that perfectly meets the needs and conditions of their company. The followings are 4 primary groups of standard general liability insurance coverage:
Bodily injury or property damage liability coverage – This coverage will protect business operators from claims due to bodily injury and property damages caused by your business operations. Meaning to say, the coverage will free you from paying compensatory damages to injured parties.
Personal injury liability coverage – When you receive a lawsuit due to something that you or your employees did or said to a third party, you can get the right protection using personal injury liability. In this case, personal injury does not necessarily mean physical injury but it includes false arrest, detention, malicious prosecution, slander and other actions that cause emotional pain to third party.
Advertising injury liability coverage – This liability coverage can protect your business from claims resulted from your advertising activities. Those who feel hurt or harmed because of your advertising activities might file a lawsuit. If you have this coverage, you will not need to pay for any compensation.
Tenant legal liability coverage – Sometimes, accidents happen. Fire and flood can damage a rented property. Tenant coverage can protect tenants from paying compensation to landlords.
Choosing the Most Suitable Coverage
To know which coverage perfectly meets your business, there are 3 factors to consider. They are type of your business, business risks and business location. If your business has more risks, you will need more coverage. For example, a landscape contractor needs more coverage than a web designer. Then, if the city where your business is located has a long track record of lawsuits, you had better buy more coverage in order to get the best protection. In conclusion, you had better conduct a thorough survey about your personal conditions and general liability insurance coverage in order to find the most suitable coverage.