What is general liabiltiy insurance? What does it protect against?
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Asked July 9, 2015
General Liability insurance for a business is a sort of all-purpose liability coverage. It protects the business against damages and injuries, gives the company a shield against civil claims, and represents the business in litigation and subsequent rulings. General liability insurance is suitable for a range of business types, including manufacturing, shipping, and construction, but it may not be sufficient for them all.
General liability protects the business against damages and injuries as a primary obligation. Injuries can include customers, employees, or unconnected parties, and the damages can be caused on your premises, at a customer location, or in transit. Examples might be a customer slipping on a showroom floor, a cabinet you mounted falling on the customer, or product you were delivering getting broken along the way.
In addition to covering damages and injuries, General Liability will also cover the costs of legal representation and litigation, up to the value of the policy. For many small business owners, the liability concerns include their personal assets as well as the business assets, and General Liability coverage helps protect against losses that could be financially devastating.
General Liability is good for small businesses, but may not be sufficient for companies or owners with a lot of assets to protect. For that, a General Liability policy can be backed up with an Umbrella liability policy. This type of policy covers the same liability concerns, but covers them above the limits of the policy you have, and has the advantage of working across a range of liability policies so that one umbrella policy can give you additional blanket protection for all of your needs.
Many different professional settings need a different type of liability called Professional Liability insurance. This is a modified type of general liability which include malpractice coverage and intangible liabilities associated with specialized businesses. Professional Liability includes General Liability as the base coverage, expanding it for the specialized applications.
Answered July 11, 2015 by Anonymous