In the modern society, a little accident can lead to protracted and potentially money- sapping lawsuits. General liability insurance, therefore, becomes essential for some companies. General liability insurance protects a company’s assets when it’s facing a lawsuit for damages it may or might not have inflicted upon a person though injury or property damage.
General liability insurance can be purchased independently or within a BOP (Business Owners Policy). Market Traders Insurance and property insurance right into a single policy. The liability insurance coverage limits, however, are often quite low. Businesses needing a greater coverage usually buy liability insurance being an independent policy.
In a general liability insurance policy, legal costs of a small business in a covered liability lawsuit need to be paid by the insurer. Covered liability claims include property damage, bodily injury, accidental injury and damages from false advertising, also known as advertising injury. Insurance firms also cover general and compensatory damages. However, liability insurance policies usually do not cover punitive damages, as they are deemed punishment for deliberate actions.
General liability plans always declare a maximum amount that insurers have to give during the policy period. Under the policy, gleam maximum amount that the insurer has to pay per occurrence. For instance, if a company includes a $1.5 million occurrence cap and loses case of $2 million; the insurance provider is obligated to pay just the $1.5 million; the others has to be paid by the business company.
As a cover against these kind of circumstances, companies buy umbrella liability insurance, which makes the picture where general liability coverage stops. It covers payments that exceed the company’s policy’s limits and gives extra protection for liabilities not covered in the standard insurance policy.
Generally, there is a requirement of the policyholders to are accountable to the insurance company the moment an accident that can lead to a liability claim has had place. The business owner will have to assist in the investigations, forward legal notices, etc.