The Value of General Liability Insurance – the 4 Facets

The Value of General Liability Insurance – the 4 Facets

When it comes to General Liability insurance, all businesses, regardless of size or type should have a policy. This is because General Liability is designed to cover non-professional negligent acts that can occur to third-parties during your business’s regular operations (a third party being anyone who doesn’t work for your organization, for instance delivery people, visitors to your worksite, and clients). We put together this article to go over the four major facets that General Liability can protect your business from: claims such as bodily injury & property damage, personal injury, medical payments, and damages to any leased premises.

Bodily Injury and Property Damage coverage is fairly self-explanatory – but certainly a necessary aspect for any business as these types of claims can tend to be costly. The law also requires this type of coverage for all businesses in most states, as it essentially protects your business from any liability if any physical injuries or damage to another person’s property were to occur during its operation. In the event of one of these incidents, General Liability coverage would provide funds to compensate the injured individual or party, as well as a defense for any lawsuit involving personal injuries or damages.

Personal Injury coverage, while sounding similar, is actually quite different from the aforementioned coverage. It covers claims such as libel, slander, or defamation, effectively providing protection against any damage to your business’s reputation. It can also protect you from copyright infringement as well, and be used as a defense for your case should that ever occur.

The Medical Payments coverage supplements the Bodily Injury & Property Damage coverage mentioned previously by helping you pay any medical expenses for accidents or injuries occurring on your business’s property. It can be a valuable crutch for business owners since medical fees can quickly pile up and be crippling to a business, whether they’re just a budding enterprise or an already well-established brand.

Finally, the Tenant’s Legal Liability coverage (formerly known as Fire Legal Liability) is coverage for individuals who rent or lease the location where your business carries out its operations. Or, alternatively, it can help should any damage be done to a third party’s property as a result of your enterprise’s operations.

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