About 44% of recently surveyed businesses stated that they have never signed up for insurance. Without insurance, the potential risk can prove more costly than insurance premiums. General liability insurance is one of the most critical covers for businesses.
Liability insurance protects companies from some of the claims resulting from typical business operations. So, what does liability insurance cover? Check out this article to know more about liability claims.
What Does Liability Insurance Cover?
General liability insurance is indispensable in a business. It covers the property damage claims that your business faces. The policy also covers the medical expenses of someone who gets injuries within your company’s premises. However, general liability doesn’t cover employees’ personal injury claims, damage on your own business, or negligence.
Here are four things that might surprise you about liability insurance cover;
General Liability Insurance and Personal Injury
If you operate a fleet, the liability insurance can cover injury claims caused by your drivers. Those hurt in a semi truck accident might include even passengers. Legally, you need to take care of the medical costs of the third-party medical expenses.
Note that the person(s) might want to file a lawsuit, probably hoping that the compensation will be higher. Your general liability insurance will cover the attorney’s cost.
You Don’t Have a Legal Obligation
Despite the apparent significance of general liability insurance, the policy is not a legal requirement. However, having the cover increase stakeholders’ confidence in your company. Every party interacting with your business needs assurance that you’ll take charge in case of any eventualities.
The General Liability Insurance Policy Doesn’t Cover Your Employees or Property
The National Safety Council reports that a worker is injured every 7 seconds. You’ll need to have a workers’ compensation insurance as the general liability insurance covers third-party injuries but not any accidents involving your employees. The workers’ compensation insurance is mandatory in most states.
Liability insurance won’t cover your property damage. Yet, it covers any property damage that your business causes. For instance, if your truck damages a client’s fence, the cover will cater to the expenses, either partly or wholly, depending on the policy limit.
You Won’t Get a License Without General Liability Insurance in Some States
With several professional services, you might need to have general liability insurance before getting a license. Some states want to know that your business can pay damages and legal fees if you caused an accident. As such, you might want to invest in this cover for your business to operate with minimal legal hitches.
Answering the Question ‘What Does Liability Insurance Cover’ Provides Great Insights for Businesses
Liability claims aren’t new to any business. A business general liability insurance is critical for any business. If you’ve been wondering, “What does liability insurance cover?” the guide has outlined it.
You need to research more on all business insurance policies before signing up. The information will assist you in making the right decisions when buying a cover for your company. You don’t want to face frustrations in the future when your business faces a lawsuit.
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