Gaps in Coverage
General liability insurance is a great tool for you to be able to protect yourself from instances in which you may be accused of negligence. If there is validity to an injury claim, your business will need to pay. When you have liability insurance, it is the insurance company that pays for you so that you don't have to take away from your business.
There can, however, be holes in your claims made insurance, personal injury insurance, or any other type of coverage and it is these holes that can cost you a lot of money in the long run. If there is a negligence claim against you and you have not covered the gaps in your coverage, you could pay out a lot of money in a settlement if that gap is uncovered.
And what you don't want is for that gap to be uncovered through a lawsuit. This could be a very expensive way to learn that your coverage just didn't have what you needed it to have in order to protect you from having to pay for liabilities out of pocket.
There are some basics to general liability insurance. Those basics include the ability to cover a bodily injury, property damage, or advertising injury lawsuit. The court and attorney costs are taken care of. If an amount is awarded to the plaintiff, then the insurance company pays that.
But what if something were to happen that you had an employee conducting business in their own vehicle and they were involved in an auto accident while doing business? In this case, you would have to have non owned auto insurance because you don't own the car, but it was for your business that it was on the road. This means your business could be held liable.
If you do not have the appropriate protection, then a gap in your insurance has been exposed. It is not a gap that has been imposed by the insurance company on purpose, but one that has happened inadvertently. You see, not every business needs every type of coverage. Every business that seeks general liability insurance is given the basics that every business needs. It is up to the business to figure out what it is they don't have what they need.
Add-Ons and Umbrellas
So now that you know that non owned insurance is a type of protection you can have, you may also want to consider such things as hired auto insurance, which means addition protection if you must rent a vehicle for the company.
These auto policies are in addition to any auto policy you may already have. If you don't have an auto policy on the vehicles used within the business, then you do need one. Your state most likely mandates it.
You can also add umbrellas onto your existing general liability insurance. For instance, you may have hit your maximum limit, but you want more protection just in case someone is awarded more money than your limits will allow. If someone would be awarded more than what your insurance will pay, you will have to pay the difference out of pocket. You can avoid this by adding an umbrella that will give you even more money to work with.
So know what you have and look at what is not covered. If you can see that there are accidents that may occur within your business that wouldn't fall under your general liability insurance's covered incidents, you will need to add additional coverage for the potential event so that you do not have to deal with extreme financial circumstances later. You never know when an accident will happen, so be prepared and prevent gaps in coverage.