What is Business liability insurance?

Business Liability Insurance, also known as Commercial general liability insurance. It can protect you and your business from a loss if you’re found legally liable to third-party claims. Moreover, for bodily injury or property damage that is unintentionally caused by your business. Hence, third-parties may include customers, vendors, or landlords. In other words, it can cover some of the most common lawsuits that arise from everyday business activities. In fact, it is one of the most important insurance policies any business will buy. Furthermore, commercial general liability insurance can also offer protection in situations where you or your staff are conducting business off-site.

What Does Commercial General Liability Cover

  1. Costs related to property damage to third parties claims made against your business.
  2. Medical expenses to settle claims by a third party that your business caused them personal injury.
  3. Advertising injury claims made against your business.
  4. Attorney fees related to settling covered claims.
  5. Administrative costs to handle covered claims.
  6. Court costs associated with covered claims.
  7. Settlements and judgments for covered claims.

b. General Liability usually does not cover:

  1. Employee injuries: General liability insurance does not cover employees who are hurt on the job. Hence, workers’ compensation insurance is the policy that employee injuries.
  2. Professional negligence: Business liability insurance will not cover professional errors or malpractice liability claims. To cover this, you need Professional Liability Insurance. Moreover, Professional liability insurance can cover lawsuits over professional mistakes, including undelivered services and missed deadlines.
  3. Liquor liability: A CGL insurance policy likely will not cover an alcohol-related incident. Furthermore, liquor liability insurance may be available for an additional premium on some policies.
  4. Employee discrimination lawsuits: Employee discrimination lawsuits. can cover lawsuit expenses related to claims of harassment, discrimination, and wrongful termination.
  5. Commercial vehicles: General Liability Insurance does not cover the costs of claims that arise from work-related auto accidents. For example, vehicles used in business, you need Commercial Auto Insurance.

A General Liability Policy for Your Business May Cover the Following Claims

  • First-Party Bodily Injury:

    This aspect of General Liability Insurance can help mitigate your loss when your business is found liable. Hence, if a third-party who is not an employee suffers a bodily injury arising out of non-professional negligent acts. Or for liability arising out of their premises or business operations. Furthermore, these damages might include the injured party’s medical expenses, legal expenses, as well as lost income from not being able to work and funeral expenses.

  • Third-Party Property Damage:

    If you’re found legally liable for incidents leading to property damage for third parties, you could face costly legal expenses. At the same time, commercial General Liability insurance helps you to mitigate the costs that you can encounter if your business. Or one of your employees is found liable for property damage to a third party either on or off your premises.

  • Advertising Injury:

    Advertising injury provides coverage for several non-physical reputational injuries that are specifically defined. Hence, advertising injury covers payment for lawsuit expenses.

  • The areas covered by Advertising injury include: 
    1. Slander or libel
    2. Infringing on another’s copyright
    3. Publications that violate the privacy
    4. Use of another’s advertising idea
    5. False Arrest and Malicious Prosecution
    6. Wrongful eviction, entry or invasion of privacy
    Who Needs General Liability?
    General Liability Insurance is not required by state law but it is a necessity for small and large businesses. Hence, every business owner should have a CGL insurance policy in place for financial protection against unexpected, yet costly claims.  In addition, this is your layer of protection, this is what will enable you to stay in business. In other words, without General Liability Insurance, you may be forced to pay the potentially ruinous costs of common liability claims.
    Businesses can encounter risk your company grows, instances do arise in which one or more of these people may accuse your business of negligence, of causing them harm or possibly damaging property. Especially in today’s age with the willingness to sue. Hence, Commercial General Liability Insurance coverage is a bare necessity. Moreover, every business should purchase general liability insurance to help cover instances. In particular to property damage, bodily injury, and legal advertising discrepancies.

    General liability insurance is a must-have for every small business owner.  In other words, think of general liability insurance as the first layer of business insurance that your company needs. Above all, contact Business Insurance California. Surely, we will provide you with multiple business insurance quotes for you to choose the cheapest small business insurance.

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