What it is
It is an insurance policy that is meant to protect the business owner as well as the business from claims by other parties. Some of the most common claims that are covered by this policy include
• Physical injuries suffered at the business premise during business operations
• Medical complications that may result from the use of your business’s products
• Property damage arising from your services or business operations
Who it is for
Any individual who owns a business can apply for general liability insurance. An individual operating a fishing canoe can apply for boat insurance, which falls under this kind of insurance category.
How it works
For example, boat insurance provides cover for any damage that a fisherman may incur while out in the waters fishing. If the boat is meant to carry people from one point to the other, general liability insurance comes in handy in the event of an accident. The insurance company should compensate the accident victims if the crash didn’t occur out of human negligence.
Different types of coverage in existence
The following are the different kinds of coverage under this insurance:
1. Third party body injury
This insurance policy ensures that customers who suffer physical injuries while at your business premise are covered. For instance, if a client slips on a wet floor in your business and gets injured, the general liability insurance will cater to the medical bills of the customer.
2. Property damage
This insurance also provides cover for any customer’s property that gets damaged within your business premise. For example, your employee may accidentally spill water on a client’s laptop while cleaning the floor, causing it to stop working. In such a case, general liability cover comes in handy.
3. Product liability
If your company deals with the sale of food products and a customer develop a complication after consuming one of them, they can sue your firm. In this case, general liability insurance will cover the legal fees if your firm happens to lose the cases as well as compensate the client.
Major benefits
The primary aim of general liability insurance cover is to ensure that you are not left to cater for unprecedented accidents from the company’s kitty. Instead, by paying a small premium fee, your firm is covered in case such disputes arose.