General Liability Insurance Cover small businesses from liability to a third party person. If you are an entrepreneur, small business owner, or contractor — you need General Liability Insurance. When it comes to business, aside from having workers’ compensation, you also need to have liability insurance. This insurance could give the business owner assurance and peace of mind because they are covered. The business can be covered if, in any case, a customer incurs an injury during their working operations.
Almost every business needs liability insurance to protect the assets of the company in case an unexpected loss happens. General Liability Insurance is an insurance that could protect the business from some claims. It can provide assistance to the insured against litigation — in case a third party person files a damage claim against the insured. It can also pay a necessary cost for bodily injury and property damages to another person.
General Liability Insurance Covers Small Businesses
Does General Liability Insurance Covers
Businesses That Are Renting its Space?
Before signing a commercial lease contract —your landlord may require you to provide a proof business liability insurance — so if they ask you about that and your answer is just a blank stare — so you think you could get an approval for your lease? Unfortunately, the answer is No. Almost all landlords require their renters to have commercial general liability insurance — so they won’t be held liable if claims arise from the business operation. Businesses are dangerous sometimes are not, but either way, you need to have liability insurance if your landlord requires you. For example, the activity of the tenant is a firework factory. If business starts a fire and causes injury to others, you may want your tenants to have enough insurance to cover the expenses for the casualties of the other person that is due to their operations.
What Does General Liability Insurance Cover?
General Liability insurance typically covers the insured company or business from claims. On which the claims involve bodily injury and property damages to others off-your business. However, coverage would only be applicable if the claims happen during the operation of the company, or damages resulting from the products of the business and its services. Besides, it could also cover or pay for the repair of your landlord’s property, if you are held liable for the damages.
Generally, this insurance does not cover injuries of your employees; you should purchase a worker’s compensation or group health insurance for them to get a benefit. Additionally, it also does not cover damages to the vehicle of the business, so a car insurance policy is also a must.
General Liability Insurance Covers
- Bodily Injury And Property Damages To Others
- Medical Payments For The Injury Of Another Person
- Products-Completed Operations
- Personal And Advertising Injury
- Damages To Premises Rented To The Business
General Liability Insurance Covers a variety of liability damages for the protection of small businesses — but its coverages have limits.
1. Bodily Injury And Property Damages Liability To Others
Besides, general liability insurance covers the liability of the business resulting from property damages to a third party person. For example, a manicurist accidentally drops-off a cuticle remover to the expensive bag of the customer — and the customer demands payment for it.
A roofer accidentally drops a ladder to the windows of the customer, causing the breakage of the window.
2. Products-completed Operations
However, in the completed operation, it could only protect the insured if the project is fully complete. Iy can cover the insured against faulty work or faulty services claims from another person. For further illustration, suppose that the customer hires a roofer to install a new roof to its old home. However, the roofer didn’t seal the spaces properly, so when the rain comes after a week, it causes a flood to its home. The roofer’s general liability policy can cover up the claims because the incident occurs after he finished his work.
3. Personal And Advertising Injury
4. Medical Payments
5. Damages To The Landlords Premises Rented To You
General Liability Insurance covers the insured for any damages to non-owned buildings, structures, or buildings. However, coverage would only apply if the business insured is held legally liable for the damages. For instance, a local firework shop is renting its shop; the local shop starts a fire due to the negligence of its employee, who throws his lighted cigarette butt near the fireworks. General Liability would cover the damages to the rented property since the business caused the fire, which leads to its losses. However, coverage won’t be applicable if the fire starts with a lightning strike.
What Does General Liability Insurance Doesn’t Cover?
a. Injuries To Your Employees
b. Owned Commercial Building
c. Professional Mistakes
If your business provides advice or services to people, you have a higher chance of having liability claims against you. So for prior protection, you must consider purchasing a Professional Liability Insurance in any case a customer files a claim against you — that they lose money due to your advice.