The Importance of General Liability Insurance



General liability insurance is an important protection for businesses of any size. It is particularly useful for small businesses and private contractors, who could face financial ruin in the event of a successful lawsuit.
Often referred to as business liability, this type of insurance provides coverage in a number of areas. It can protect businesses from things as mundane as loose carpeting or spilled food products to serious tragedies. Although it may be included as part of a general business policy, liability coverage can be obtained separately for the purpose of providing protection in the event of injuries or property damage experienced by third parties. It also provides coverage in cases of legal action stemming from the damage to a person’s reputation and in the event of a copyright infringement. In cases of bodily harm, it will cover the medical expenses of the injured party.
There are actually different types of general liability coverage. An ordinary policy is ideal for private contractors who may not own buildings or other properties and thus do not need regular business insurance. Specialty general policies are available to businesses that have greater exposure to risk, such as those engaged in construction. General liability coverage will not extend to professional negligence that is directly related to the actions of the contractor or business owner. Additionally, it will not cover first party damages, such as theft or harm to the property belonging to the company itself, although such protection is normally included in a regular business policy.
The costs of such insurance will vary upon the type of business or the type of work carried out by a contractor. However, the coverage should be enough to cover all potential risks. The deductible, which is the amount that will not be covered, will also have to be negotiated beforehand. Although there is normally no legal requirement for general liability insurance, the purchase of such a policy is one way a business can protect its assets in the event of a third party incident.

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