What Does General Liability Insurance Cover?
Business owners have a large amount of responsibilities. From payroll to inventory, there’s a lot of things that need to be considered. When working with any group of associates, there are certain risks that can arise which can leave a business in poor conditions. In desperate times this can leave a business paralyzed and bankrupt. While business owners rarely anticipate a large-scale incident, or any accident for that matter occurring, the inevitable will often arise when least expected. It is much better to be prepared with General Liability Insurance than to suffer the consequences of lawsuits and litigations.
Direct Insurance Network recommends General Liability Insurance to protect against claims for bodily injury and property damage. These insurance terms can be tricky to understand without familiarity. What does general liability insurance cover? We’ll explain exactly how these coverages protect a business in a time of need and exactly what each business owner should be looking out for.
A very important thing to know about most General Liability Business policies is that they cover strictly third-party property damage and bodily injury. Third party means that in the event of an accident, this coverage pays out for the costs for an individual or organization that is not employed by your company. Employees of your organization are referred to in terms of “first-party.” You're asking yourself what does general liability insurance cover and we have answers for you. Direct Insurance Network offers these coverages for third party in the event of either property damage or bodily injury for a party that is not receiving pay or contracted by your business.
Direct Insurance Network works with carriers that make it easy to determine exactly how much coverage is right for you. When it comes to General Liability Insurance, it’s important to remember the options when it comes to the limits of the policy. The policy generally carriers one limit per occurrence (or accident) and then a separate limit which is the max for they year. These are always presented as single limit and policy maximum. With the coverage limits set up this way, the business owner has the ability to adjust the amount they have set up to be available to be paid in the event of an unexpected loss. A typical limit ratio for these policies starts at $1 million per occurrence up to $2 million per year as a policy maximum. However, these limits can vary based on your business’ size and needs.
What does general liability insurance cover doesn't need to be a mistery anymore. Direct Insurance Network works to evaluate your needs so that you aren’t under or over insured. While $2 million dollars may seem like a lot at the time, keep in mind that medical bills as well as equipment and property have been heavily impacted by inflation over the last decade.
Specific situations may arise in which having General Liability Insurance is necessary. What does general liability insurance cover? With Direct Insurance Network, questions arise all the time surrounding the thought “what is actually covered under property damage?” We know this part can be confusing for business owners as they’ve likely never experienced a General Liability claim before. The first part of the General Liability coverage applies to property damage to (another individual’s) property based on something that your business did. This can range from an employee’s negligence, a simple accident, or even a fire that has started on your property and now spread to other’s.
The property damage coverage would not apply to any of your personal belongings in these cases but it would take care of the other people impacted who do not work for you. This means that if you have a staff member who unintentionally drives through a client’s garage door, this property damage would be able to compensate the third-party. The Direct Insurance Network knows that owning a business is expensive, and you’ve like invested a lot of money. With General Liability Insurance, you won’t have to worry about the cash in the bank or your assets, the insurance company pays out for the damages caused to others.
In regard to the coverage for bodily injury, this coverage is more involved. As far as what does general liability insurance cover, it's important to know the small details. This coverage is very important to have as a business owner because it protects you from price gouging from medical providers with steep hospital bills. This is not a coverage for your associate’s medical insurance or if they get injured on the job. That coverage would fall under their personal benefit plan or workman’s compensation respectively. This coverage for General Liability bodily injury applies to the damages to an individual who is injured as a result of an act from your business or organization. If you have an associate who drove through a front entrance and injured a potential client, it’s likely that the medical fees are sufficient to bankrupt the business. To avoid this, having an appropriate limit of body injury will prevent any potential future lawsuits from interrupting your flow of business.
What does general liability insurance cover - let this question be no more. Direct Insurance Network is a leader in the industry and it is apparent in their service and their attitude towards advocacy. The specialists at Direct Insurance Network are prepared to assist you by talking through each coverage with you thoroughly in order to better understand how we can assist you in finding the exact right plan for your business. Purchasing General Liability Insurance can seem like a chore as a business owner but the benefits allow for more freedom and more peace of mind as soon as the policy is established.