What Is Commercial General Liability Insurance?
As an independent insurance agency, Tatum insurance understands the importance of general liability insurance for your company. Businesses require different kinds of insurance coverage for protection in the event of an accident, disasters or legal matters. General liability insurance is meant to offer coverage for basic liabilities which includes injury-related lawsuits. Our team of professionals will educate you about insurance for your business and the discounts available for policyholders.
Understanding General Liability Insurance
General liability insurance is formulated to protect your business from other businesses. It also protects your company from individuals who may hold you liable for property damage or bodily harm. There are many incidents which may cause your business to be sued by the third party. General Liability insurance policy provides coverage for your businesses defense in a court of law. It also pays for the entire court process. Understanding this coverage is a vital first step to managing general liability insurance risks.
General Liability Insurance Coverage Types
A general liability insurance policy is also known as commercial general liability. It provides coverage for injured customers, damage to other people’s property, and it may help to pay for medical expenses. This insurance policy will also help cover the cost of claims against your company for the following:
- Third-Party Bodily Injury
- Third-Party Property Damage
- Advertising Injury Claims
- Reputation Harm
Third-Party Bodily Injury
If someone is hurt on your business premises, he/she can make a bodily injury claim against your company. For instance, a person delivering a package slips on slippery floor tiles and fractures their arm in your accounts office while delivering a package. This insurance policy may help cover the cost of bodily injury claim the person may make against your business including medical payments.
Third-Party Property Damage
If your employee causes damage to someone else’s property, you may be faced by a third party property claim. For example, your employee causes damage to someone else’s property while doing business. The damage may be done to an actual building or an item owned by another firm. Third-party property damage may help cover the cost of property damage claims against your business.
Advertising Injury Claims
Any verbal or written communication which causes harm to another company in the course of running a business is covered under general liability insurance policy. Advertising injury claims involve offenses committed by a company while advertising its services, products, or goods.
The injured party typically suffers financial loss. For example, your business may publish an advert that disparages another business, causing damage to its reputation. Your advert causes the company to lose clients, and your firm is sued for compensatory damages to recover lost income.
General liability insurance guards your business from advertising injury claims and deals with them on your behalf. Advertising offenses which may be covered under a general liability insurance policy include:
- Infringing on Another’s Copyright
- Using Another’s Advertising Idea
- Invasion of Privacy
A business may claim that your company has harmed their reputation. For instance, you may be at a business interview on the radio and you are asked about competition in your industry. One of your competitors listens to the discussion and claims that your firm harms their reputation. A general liability insurance may cover the cost to resolve allegations of slander and libel against your firm.
Qualifying For Discounts
You may qualify for discounts and save on your monthly premiums in your business. These discounts do not mean that your business will be inadequately covered. Your firm will still be adequately covered while saving on your insurance premiums. The dollar amounts and number of discounts you may qualify for typically depends on your carrier, location, and business class. Remember to ask your agent for all the discounts you may be eligible for when you are getting a quote.
Some discounts your business may be qualified for include:
- Full Payment Discount
- Multi-Policy Discount
- Safety Discount
Full Payment Discount
Many business insurance providers offer discounted rates for paying your premiums in full, rather than paying in monthly installments. For instance, say it’s time to renew your current general liability insurance coverage and you are emailed a bill for $600 to cover the next six months of your policy. If you pay $600 in full immediately, you may get an instant discount. A full discount payment could save you 5 to 10 percent depending on your carrier.
You can bundle your business insurance policies with the same carrier and qualify for a multi-policy discount. For example, you could bundle your general liability policy with business interruption insurance.
You may qualify for discounts by improving your firm’s overall safety, security, and being claims-free status. You may be eligible for discounts by doing the following:
- Installing accessible fire extinguishers and sprinkler systems
- Building security systems and installing surveillance cameras
- Reducing your business liability through driver safety programs to reduce the likelihood of claims.