General Liability
What General Liability Protection Can Provide
Bodily Injury
Of course, no small business owners like to think that something their
company does or doesn't do could injure, even kill someone else. But
it's comforting to know that if you are ever held legally responsible
for such an injury, sickness or disease, General Liability coverage
will pay the affected person or organization for:
- The cost of care;
- The loss of services; and
- Restitution for any death that results from the injury.
Property Damage
Regardless of how careful you are, you may find yourself in a situation
where something your business does or doesn't do damages someone else's
property. Even if you don't physically injure that property, you may
do something that actually prevents its owner from continuing to use
it. If so, you'll rest easier knowing that General Liability coverage
will compensate the property's owner for either:
- The physical damage to the property; or
- The loss of use of that property.
Products-Completed Operations
General Liability typically includes liability protection for your company's
completed products or services. This means that, if an injury ever resulted
from something your company made or some service your company provided,
your policy would pay for the resulting damages and any legal expenses
(up to your policy's limit). And if you were sued because of these damages,
your policy would cover related defense costs regardless of who was at
fault -- in addition to your policy's limit.
Contractual Liability
General Liability coverage extends to any liability you may assume
by entering into a variety of different types of contracts, including:
- A building lease;
- Any easement of license agreement;
- An agreement to indemnify a town or city if required by ordinance;
- An elevator maintenance agreement.
Liquor Liability
As long as you're not in the business of manufacturing, distributing,
selling, serving or furnishing alcoholic beverages, the General Liability
policy will protect you in case someone claims you are legally liable
for a liquor-related accident. This means that, as long as you don't
charge for the alcohol, you would be covered if you occasionally distribute
alcoholic beverages -- such as at any annual company picnic or a holiday
office party.
Employee Injuries
If one of your employees ever sues you for an injury you supposedly caused,
your General Liability policy would not cover any damages. Rather, this
type of protection would be provided by your Workers' Compensation policy.
Fire, Lightning or Explosion Damage
Whether you rent or own your business property, you'll find it reassuring
that the insurance plan for small businesses includes coverage for damage
to property of others resulting from fire, lightning or explosion damage
caused by you. Better yet, this coverage applies to other parts of the
building you occupy that may be damaged due to your negligence. For example,
if you rent the second floor of a building, and through your negligence
cause fire damage to the first floor, your liability policy will also
cover the damage you've caused to your neighbor's office space.
Hired Auto & Non-Owned Auto
Hired Auto & Non-Owned Auto coverage is typically added as an endorsement
on a General Liability policy. When there are no vehicles titled in the
company name this coverage will meet the contract requirement for Commercial
Auto coverage.
Hired Auto coverage replaces or augments the liability coverage offered
by auto rental agencies. However, the vehicle must be rented in your
company's name and this does not replace the physical damage coverage
that applies to any damage you cause to the vehicle you are renting.
You should still obtain physical damage coverage from the rental agency.
Non-Owned Auto coverage protects your company in the event that your
company is sued as a result of an auto accident that you or one of your
employees has in a personal vehicle while on company business. This coverage
will not protect you or your employee personally, only your personal
auto policy will do that.
Legal Defense Costs
Even if your company is not legally responsible for some claim someone
makes against you, it can be quite expensive to defend yourself against
such claims. Fortunately, your liability policy will typically pay for:
- Any defense costs incurred directly by the insurance company, including
attorney's fees, witness fees, and police reports;
- Any court costs or related costs you're charged in connection with a
legal suit;
- Reasonable expenses you incur at the insurance company's request to assist
in your defense (such as loss of earnings if you have to testify in court).
Your liability policy will also pay the premium for any bond the court
requires, making sure judgment will be paid if you are found legally
liable for some injury or damage.
Medical Payments
If someone is accidentally injured either by you or at your business
site, General Liability coverage will pay for medical and funeral expenses
incurred within one year of the accident (up to your policy's liability
insurance limit). For example, if a customer slipped and fell on your
premises and had to undergo medical treatments.
Personal Injury
Something your business either does -- or fails to do -- may not physically
harm a person, but it may personally injure them. If so, you'd want to
know that your liability coverage would protect you from any lawsuits
arising from such an injury. Most General Liability policies provide
coverage if you are accused of: · publishing (either verbally
or in writing) inaccurate information that slanders or libels a person
or organization; · publishing material that violates a person's
right of privacy; · falsely arresting, detaining or imprisoning
someone; · maliciously prosecuting someone; · wrongfully
evicting someone.
Advertising Injury
If you are ever sued because of something that happened during the course
of advertising your company's own goods, products or services, this policy
will provide valuable liability protection. Such advertising injuries
may result from: · publishing (either verbally or in writing)
inaccurate information that slanders or libels a person or organization; · publishing
material that violates a person's right of privacy; · copying
some other company's advertising ideas or style of doing business; · infringing
on another company's copyright, title or slogan.
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