Before making a concrete decision on which insurance cover to take ensure you have read the insurance policy carefully so as to know what is included and excluded. By understanding the insurance cover, you will be in a position to take the right decision and avoid surprises when making your claim.
A general liability insurance cover basically covers all the accidents that may occur at your business. It can be a painful experience to build up a business at the peak then eventually collapse when someone files a lawsuit. Some claims can be higher than the capital of the business and in such a case, you need an insurance cover. Nevertheless, you need to know what this liability insurance covers so as to make the right choice. Let’s have a look at that.
What Does Liability Insurance Cover?
Assuming that you are running a fast food business and a customer buys some sausage from your outlet and later falls sick seriously and he or she goes ahead to sue your business, you will be liable to pay over $20,000.
That can be a real withdrawal out of your business if you had not planned for it. If in case you breach the reputation of another business, it will be even more expensive. The only way you can prepare for such cases is to have liability insurance for business. Here is what it covers:
- Bodily injury of the third party
If a person injures him or herself in your business premises, they may go ahead into the court of law to make a claim against your business. In such a case, the general liability insurance for business can cover such claims.
- Property damage of the third party
Assuming your employee causes damage to the property of your client, it is your business that is supposed to settle and compensate for the property. General liability insurance can be very useful in such a situation.
- Product liability
It is not all the time a customer will be injured or their properties get damaged at your store. Sometimes you may be involved in distributing your goods and perhaps it causes harm to the customer. You can be easily sued to cater for the damage caused.
- Advertising injury
You can be sued if your employee makes a slander against another business or when you do copyright infringement. General liability insurance for business can enable you to settle for such claims without affecting how your business functions.
- Reputation harm
This is one of the most expensive claims that your business can be faced with. Your competitors may sue you for advertising or saying things that harm their business’ image and reputation. This is where this insurance cover can save you.
Conclusion
General liability insurance for business is one important aspect that every entrepreneur should ensure they have before diving into their business. In addition to helping you pay for the above-mentioned claims, this insurance cover can cater for the attorney fees, the administrative costs, court fees, and the settlements required. Ensure you have this cover as a business person.