A Basic Guide to General Liability Insurance: What You Need to Know
General liability insurance (GLI) is a policy that provides coverage for known business risks. It helps cover costs of repair or replacement for property damage claims against your business. You can also make claims for treatment costs if a guest sustains an injury on your property or when using your product. It also covers libel, defamation, and copyright infringement claims against your business.
Here is a closer look at the different types of expenses covered by general liability insurance.
Property Damage Costs
Any damage that happens to the client or their property that is caused by your business is covered under property damage. Your provider pays you the actual value to replace or repair the damage, as long as it doesn’t exceed your coverage limit.
Medical Bills
Hospital expenses incurred when any of your workers sustain an injury in the course of business will be covered by general liability insurance. Treatment for visitors that get injured on your property or while using your services can also be covered.
Libel and Defamation Charges
Costs acquired due to verbal or written statements made by your business to defame or damage the reputation of someone else are covered under libel and defamation protection.
Expenses Related to Lawsuits
Businesses are prone to face legal battles. As such, coverage for legal claims against your business is of utmost importance because court fees can be substantially pricey. General liability insurance can help cover these costs.
Your policy kicks in if the claim is covered under the terms of the contract between you and your provider. Since the most basic general liability insurance does not cover every liability present in modern business, you can look for ways to increase your coverage for better protection. First, you need to understand how general liability insurance works so you can identify any coverage gaps.
The Extent of Coverage Offered by General Liability Insurance
With general liability insurance, you can make a liability insurance policy claim when you make mistakes, whether intentional or negligent, that harm others. It is the standard and foundational coverage for most enterprises because it protects the employees and customers. A general liability insurance policy includes a myriad of coverages such as:
- Bodily injury
- Property damage
- Personal injury
- Product-related injuries or completed operations injuries
Although this policy covers various threats, businesses are at risk of much more damage without these coverages. You must look for ways to increase protection to avoid business interruptions or closure.
Here are some ways to increase the protection offered by general liability insurance:
Increase Your Liability Coverage Limits
Like other insurance policies, general liability insurance will only pay out up to the maximum coverage limit. If your maximum limit is $700,000 and you have a bodily injury liability claim that exceeds that amount, you will have to pay out-of-pocket to repair or replace what is not covered. It is important to purchase coverage with high limits that are in line with the degree of risks your business faces. To boost your coverage limits, reach out to your provider for the available options, or ask your colleagues for the best coverage options in your industry.
Add Endorsements to Your Policy
An endorsement is an addition to your original policy that increases its coverage limits. A standard general liability insurance policy may exclude coverages like cyber liability, errors & omissions, employment practices liability, directors & officers’ coverage, and more. These can be added to your policy in the form of endorsements. Make sure that your endorsement covers industry-related risks that are specific to your business.
Buy an Umbrella Policy
An umbrella policy for your business is the best option to significantly minimize risks. This policy can only be purchased as an addition to other coverages. Even if you buy extensive general liability coverage and endorsements, there are still liability claims that might slip through the cracks. In that case, an umbrella insurance policy is the best solution.
An umbrella insurance policy is a far-reaching coverage for unprecedented occurrences because it helps ensure maximum protection. You need umbrella insurance because it is the closest option to buying full coverage for all claims. This plan kicks in once your liability exceeds the limits of your general liability insurance and your endorsements. The limit for an umbrella policy is usually higher than those of standard coverages.
Do not hesitate to contact your insurance provider for ways to expand your general liability policy and tailor it to your business. The risks of no coverage or insufficient coverage are far more than the cost of purchasing adequate protection. Having the right insurance policy in place will ensure your business’s long-term financial security.
Do you have additional questions about your business insurance coverage? Contact the experts at Remland Insurance in Orange, California. We are ready to assist you with all your insurance needs today.