Demystifying General Liability Insurance

Purchasing business insurance is a bit confusing if you aren't sure where to start. With so many types to choose from, how do you know you are getting the right type of policy for your business? One essential policy to consider is a general liability insurance policy. Here are a few common questions associated with general liability insurance, along with the answers you’re looking for.

What is a General Liability Insurance Policy?

A general liability insurance policy has two main goals: to protect your company against claims of negligence and to indemnify the claim if it is determined that it is reasonable. What this means in much simpler terms is that if someone takes out a lawsuit or files a claim against your business, your general liability insurance policy is there to help defend you and pay out on the claim.

What Do Bodily Injury and Property Damage Mean?

One common question about general liability insurance is what bodily injury and property damage mean. Bodily injury refers to the medical bills, loss of wages and other associated costs when a third party is either directly or indirectly injured by the actions of your company or employees. Property damage refers to the replacement or repair of any objects damaged in an incident.

Does a General Liability Insurance Policy Protect You from a Lawsuit?

General liability policies do protect your company if you are sued for negligence. However, they do not cover you if you are suing another party. In most cases, your insurance carrier will cover the costs of investigating any lawsuit claims and the cost of hiring an attorney to defend you in court. However, each policy has its own definition of what is covered and what is not, making it important to check with your agent for further details.

What is Medical Payments Coverage? How is It Different from Bodily Injury?

Although they are alike, medical payments coverage and bodily injury coverage are a bit different. Medical payments coverage refers to instances where someone comes to your place of business and is injured on the premises. (Examples would include slips, falls, tripping etc.) Bodily injury refers to an injury or death resulting from an action by yourself or your employees. Both types of coverages are designed for third-party persons and not your employees.

Of course, there is much more to understanding general liability business insurance. Sitting down and discussing your exact policy needs with your independent insurance agent is the easiest way to clear up any questions you have about your coverage needs.