Business General Liability Insurance
Business general liability insurance offers an answer to your concerns about the legal risks you run as a commercial entity. Starting any kind of company -- whether it involves manufacturing, telecommunications, retail sales or hospitality -- exposes you to liabilities every day. Customers may be injured on your premises, or competitors may accuse you of false advertising. Because the costs of legal defense can be overwhelming, your organization needs business general liability insurance to protect your financial security.
The best way to minimize your exposure to liabilities is to minimize risks in your work environment. Common sense measures like your building safe, clean and well organized can reduce the number of accidents on your property. The company that provides your business general liability insurance may offer educational safety materials, training or loss control reviews to help you increase the level of safety at your work place and reduce the number of claims you file.
Benefits of General Liability Policies
Business general liability insurance is designed specifically to address your commercial liability needs. Some businesses choose to combine their property and liability plans into a single form of insurance coverage called a business owners policy, or BOP. Although bundled insurance policies can save your small business money on premiums, the liability component of a BOP may not meet your needs if you face a lawsuit for a serious injury or loss of property.
If a customer's complaint goes to court, attorney's fees and court costs can quickly spiral beyond the limits of a BOP. If you are found responsible for a fire, explosion or other incident that causes widespread damage and property loss, you'll need a more comprehensive plan, like business general liability insurance. These policies reflect a more realistic assessment of your legal defense needs in a commercial liability lawsuit.
When you purchase general liability coverage online, you don't have to worry about suffering devastating financial consequences as a result of an unintentional mistake by one of your employees. As hard as your staff tries to meet production standards and prevent accidents, injuries can occur on any job site. Protecting your business with general liability insurance can relieve you of some of the stress involved with trying to run a safe business.
Limits of General Liabilities Insurance
Your business general liability insurance contract will state the maximum coverage limit, or the total benefits that your insurer will pay, within a policy period. Your contract should also state the maximum amount that your insurer will pay per occurrence. If your legal costs or the damages awarded to a plaintiff exceed these limits, your business could be held financially liable for the excess.
A business general liability insurance company typically will not pay for punitive damages. Punitive damages are awarded in cases where intentional bodily or mental injury was done. Although your coverage may pay for your legal fees in these cases, awards to the plaintiff would not be covered.
You can increase the amount of general liabilities insurance your company carries if you have concerns about your policy's maximum limits. Talk with an agent or broker about the amount of financial protection that a company of your size in your line of business should purchase. If general coverage doesn't meet your needs, you may purchase an umbrella plan to cover damages that exceed your limits.
Qualities of a Trustworthy Insurance Carrier
Any company that offers to sell you a policy should be licensed to sell coverage in your state. A trustworthy carrier should have a solid financial background and a good reputation in your community. Because protecting your company's assets is so important, it's worth your time to confirm that your carrier is authorized to sell policies and has a strong record of processing claims efficiently.
Reliable carriers have claims adjusters or other live customer representatives are available around the clock, so that you can report an incident as soon as it occurs. In general, the sooner you call your adjuster to report any occurrence -- even if the incident never leads to a lawsuit -- the more likely you are to have a satisfactory resolution. The provider you choose should be familiar with the risks you take in your business's daily operations so that you can work together to resolve incidents more quickly.
As you compare quotes on business general liability insurance from different providers in your part of the state, consider the reputation of each firm and their financial history as well as the rates they offer. Although you want to find the most reasonably priced coverage available, you don't want to sacrifice high-quality service or reliable protection. Use this website to make contact with a number of companies so that you can choose the best product for your organization.