You never know when you are going to be accused of negligence or wrongdoing. As a matter of fact, you never know when your actions may cause an accident and, because of this, the accident may lead to a claim against you.
General liability insurance protects you against claims of negligence. When the claim is a valid one, an individual can pursue you for the damages. They can pursue you for damages sustained due to bodily injury, property damage, or advertising injury. Negligence can happen in different ways, so it is important that you do what you can to try and protect yourself against it.
There have been businesses in the past that have felt they would not need personal liability or premises and operations insurance. For them, negligence is not an option and, because of this, they are not protected. The reason why these businesses do not cover themselves is because they feel that they have trained their employees well and that their employees are not going to be put into a situation where they may be negligent. Plus, some make it clear that an employee can lose their job due to a negligent act.
Unfortunately, accidents do happen. An employee can be very careful and something still occurs. An individual who comes into the establishment can find the minutest thing and make it a big deal. If they can back themselves up, then a lawsuit could be deemed valid. If that's the case, you definitely want to be protected.
As for how your assets can be compromised, business assets can be used to satisfy the debt if your insurance limits are reached. Usually this can mean dipping into the business's profits. If a business is a small business without a lot of money in the bank, this can mean selling off assets. Employees are considered assets in many ways and one way businesses compensate themselves for the damages they must pay out is to cut down their staff. This involves people losing their jobs.
So to keep yourself from losing your most valuable assets, general liability insurance to protect against damages incurred due to negligence is a must. You can keep your employees working rather than have to lay them off or sell your business assets.
Types of Negligence
There are different types of negligence. For instance, you or an employee may accidentally leave a hazard in the floor and someone trips over it. A common event is when the floor is wet and there is no wet floor sign to warn those coming into the establishment that there is a slip and fall hazard. If a person falls and hurts themselves, they have the right to pursue you for their medical expenses and any other damages that they have incurred.
Another type of negligence is when your employee is out in their car or one of your company vehicles and they are at fault for an automobile accident while performing job duties. The employee's insurance policy may cover the damages to an extent, but then it is the responsibility of your company to cover what the employee's insurance doesn't cover. There are times, however, when the employee's insurance company won't cover anything because the employee was performing job duties.
So because you never know when a negligent act may occur, make sure you are protected. All it takes is one minor accident for major expenses to be incurred. If you are not protected, then you could be dealing with some rather severe consequences of negligence in the way of losing assets, including your very valuable employees so that you can compensate accordingly.