Businesses need comprehensive insurance to safeguard themselves against risk and be ready to handle common liability claims. It is imperative that they understand the scope of general liability coverage in a commercial insurance package.
Benefits
The proceeds from a general liability policy can pay for legal costs when a company has to defend itself in a lawsuit. An insurer may also settle a claim, and it could be responsible for a court-ordered judgment if it elects to litigate a claim.
Exclusions
A base general liability policy may exclude coverage for certain types of claims involving a business’ everyday customers. A personal injury action, for example, may not necessarily fall within the terms of a general liability indorsement. Businesses that open their doors to the general public typically need a public liability insurance policy. This coverage can address claims involving bodily harm to patrons.
Limits
The total value of a policy’s benefits can impact the cost of premiums. In some situations, it may be advisable for businesses to supplement their coverage with an umbrella policy or an excess liability policy.
In the process of identifying insurance needs, every business’ risk analysis is unique. Likewise, many insurance carriers closely examine how businesses protect themselves against general risks inherent to their operations.
