The importance of a business liability insurance is understood by all those people who are into some sort of business. If you have got into any type o
The importance of a business liability insurance is understood by all those people who are into some sort of business. If you have got into any type of business, the importance of an insurance policy, precisely a general liability insurance can be very well felt. Well one thing that plays role in an insurance is the kind of coverage you are getting. Have you chosen the right kind of policy yet? Is your general liability insurance enough to protect you during the time of need?
What is a General Liability Insurance?
A general liability insurance protects the insured from getting into unnecessary troubles of lawsuits and covers up for the compensatory and punitive damages. While running a business you are always exposed to different types of risks- mainly so, if you are dealing with the public. General liability insurance covers up for the medical costs for the injuries caused to the customers while dealing with you.
How To Know If Your Business Needs a General Liability Cover
You might be optimistic about not getting a claim but at times of crises, you might have to end up paying a lot more than what you should be paying as an annual premium for a general liability insurance policy.
The primary thing that determines the coverage depend on the type of business you own and the types of risk associated with it. For example, you have a cotton factory and a set of 100 workers working for you then the risk is more. Risk is comparatively less if you own a store selling stationary items. This is so because the location of your business also plays a major role in determining the coverage you would need. In short, if you have a business falling in the lower risk category, you do not have to ponder much over a general liability policy. A business owner’s policy would hold good. This gives a combined coverage for general liability and property damage.
What Your General Liability Insurance Doesn’t Cover
A general liability insurance covers up for the punitive damages, obligation for medical costs, cost for your legal defense, compensatory damages and other settlements awarded against you. However there are certain things that a business liability policy doesn’t cover. You may not get any coverage if any of your own property is damaged. Same applies when any of your employees is hurt. You need to get a Worker’s Compensation Insurance to cover up the medical costs for the employees.
General liability insurance doesn’t give coverage for professional mistakes. A professional liability insurance has to be taken up to provide coverage for the mistakes for the damages caused to the business due to professional mishandling.
Depending on the type of business you have, you might also require few other insurance policies. For specific requirements you may get in touch with your insurance agent to give you a clear idea about the different types of insurance you should have for your business.