The majority of business owners know about General Liability Insurance. At least they know about it in theory. The problem is that most business owners assume it covers just about every type of situation. After all, it’s a ‘general’ insurance policy. Right?
Wrong! General Liability Insurance does NOT protect you against all types of claims. If you do not have supplemental coverage, you could find yourself liable for large sums of money. That is why it is important that you know what general liability covers and what other types of insurance are available.
General Liability Insurance, or Commercial Liability Insurance, covers third-party claims of bodily injury or property damage. Remember that infamous court case when McDonald’s was sued for having hot coffee. It doesn’t matter whether or not the claim is valid. General liability covers the legal fees that accrue just defending yourself in court. As long as the claim is brought by a third-party, then general liability comes into play. For insurance purposes, we define a ‘third party’ as anyone other than a company employee.
General Liability Insurance usually pays for the cost of investigating a claim and any legal fees that arise from an incident.
- Attorney Fees
- Court Costs
- Witness Fees
- Medical Expenses
- Repair or Replacement of Damaged Property
Suppose that a customer trips over a display and falls. If he gets hurt he can potentially sue your business for medical costs, loss of income, and pain and suffering. Such claims get covered under your general liability policy.
What Other Types of Insurance Supplement General Liability Insurance?
Many businesses would do well to supplement their general liability policy with added protection. These supplemental policies cover special situations and often are industry-specific.
Cyber Liability Insurance
If you keep a customer database, then you NEED Cyber Liability Insurance. Just about any business that uses digital technology must think about what they do if their systems were breached. If hackers take your customers’ credit card numbers, then cyber liability insurance protects you from costly settlements.
Liquor Liability Insurance
Some general liability policies include some limited liquor liability coverage. However, it only protects a business if no money changed hands for the alcohol. If your company sells or manufactures alcoholic beverages, then you should look into purchasing a separate liquor liability policy.
Errors and Omissions Insurance
Errors and Omissions Insurance protects you against third-party claims of a more abstract nature.
- Invasion of Privacy
- Copyright Violations
- Infringement of Trademark, Slogan, or Title
- Libel or Slander
Errors and omissions insurance policies cover the business owner, company employees, and their subcontractors.
How Much Does General Liability Insurance Cost?
Every company is unique and requires a different amount of coverage. The products and services you offer and the size of your company are just two variables that affect the cost of general liability insurance. For a fast, accurate quote, you should contact your insurance agent at Post Insurance in Torrance CA. We can help you get the coverage you need at the best possible price.