Today, more and more people are aware of the liabilities that they face in their lives. Accidents happen everywhere. There is no telling when you will suffer a fall or a slip as you go around your affairs. Most businesses are well aware of this and that is why they go for Commercial general liability insurance cover to protect them from the litigations that might arise after an accident or damage to property happens in the course of running their business. If a business is small and without the requisite finances, an accident claim from a client can put you out of business. Therefore it is safer to have insurance cover just in case something happens.
What is Commercial general liability insurance?
Commercial general liability insurance is necessary for any business entity that can be held responsible for damages that happen to other people. This insurance cover is necessary for businesses that require clients to come to one’s premises, where your employees work at client’s home and in a medical setting where patients can suffer damages in the course of treatment. Since these claims develop up to the case level, it is important for any business to have commercial general liability insurance as that can help one to avoid costly claims. For example, a general liability insurance cover will settle the costs of litigation as well as the compensation to the claimant. Without this, you will have to fork the money out of your pockets, something that is very hard for a startup.
Below, we will look at the different scenarios that can trigger commercial general liability insurance claims.
- Public liability. This type of liability cover protects a business, individual, incidence, and infrastructure when one is found liable for injuries, damages, death and even malice. A client or a building owner can lay these claims when the damage occurs.
- Indemnity insurance. This cover protects your business against any claim of cash. This means that if a client’s money is lost while in your hands, the cover will help make compensation. This is very important for businesses that handle cash. Also, if something happens and you are not able to deliver a contract as agreed with a client, the cover can help make the necessary compensations without hurting the normal running of your business.
- Board of directors’ coverage. Commercial general liability comes with a coverage that protects the board of directors incase of litigation. There are instances where the board of directors will make decisions that infringe on another company, an employee or a product. In such a case, someone may challenge them in court and seek redress on the same. In this case, the commercial general liability insurance will come in handy to make a settlement.
- The umbrella liability policy. The umbrella litigation policy covers all risks that can cause a loss to a business. These risks include injuries to clients and business associates while at your premises, damages that your business activity has on the building and litigations as a result of defamation. Sometimes, your company may put advertisements that are demeaning to another company. In such a case, you may get sued.
- Insurance for the products. This commercial general liability insurance policy is intended for the products being produced for the purpose of being sold to the mass market. The policy protects a business against any litigation caused by the process of producing, transporting or selling the products on the market. This may be as a result of injury, harm or damages suffered during this process. It is also important to note that the policy protects a business against death that arises in the process.
Commercial general insurance is very important in the business world as it is the cover that protects many businesses from the loss of litigation. If you run a business where customers are constantly walking into the premises, they run a risk of suffering injuries from falls and slips. Similarly, the activities of your business may cause damages to the building where you are operating from. If there are damages on the building where you are operating in, the commercial general liability cover will get you covered.
To get the best deal out of the commercial general insurance, it is important to talk to insurance brokers who will look at your needs before recommending the best commercial general liability insurance for your use. Such a team has the necessary experience on how to handle the situation. That way, you get great value for money.