Does your business have enough liability coverage?
Commercial general liability (CGL) insurance is a commercial insurance policy designed to protect businesses against damages that can occur to another person’s property or self. General liability protects your company from legal claims and responsibilities that can arise when a customer injures themselves while in your retail store, office or other place of business. It also protects your company from damages or injuries that arise from services you or your employees render.
When someone gets hurt or injured while in your place of business, they can sue you and your company for damages, hospital bills, loss of work and other property loss due to the harm caused. General liability insurance helps protect your business from large lawsuits, judgments and monetary awards. Without this type of coverage, one seemingly minor accident can turn into a multi-million dollar lawsuit that may force your business into bankruptcy.
General liability insurance is very comprehensive. It covers all potential accidents or injuries that are not specifically excluded from your insurance policy. It is designed to help protect your company from unforeseen and previously unimagined accidents or events, so it covers a wide variety of things that are not specifically stated in your commercial policy. Effectively, general liability insurance will cover most accidents and injuries that might arise inside your work place or in conjunction with the business products or services you offer.
With a general liability insurance protection policy in place for your business, you can rest easy knowing that all of the basics are covered. If a client stumbles over boxes while on the premise of your company and must go to the hospital to treat the fall injuries, general liability insurance covers the cost of the ambulance and hospital bills.
Accidental injuries and property damage can happen outside of your office or retail location as well. If customers are injured due to activities your company has in progress at an offsite location, general liability insurance will cover the expenses involved with those accidents as well.
General liability insurance is critical for all businesses that work with products. Whether you simply handle the products or you actually sell or manufacture them, general liability coverage helps protect you when something goes awry with those products.
For example, a beauty salon may find that their customers have an allergic reaction to new shampoo products, or an auto repair shop may find that a specific type of engine fan that they have been selling and installing is defective. In either of these cases, general liability insurance helps protect your company from lawsuits and class action cases that may arise due to your customer being harmed — as in the case of the allergic reaction or your customer’s property being harmed and even in the case of the auto repair shop’s defective fan.
When you complete agreed upon work for a customer or client, there is the potential that you can be held liable for the injury or damage to your customer or their property due to your product or service.
For example, if an assistant or intern in a veterinarian’s office gives a customer’s dog a flu shot, and that animal has a severe allergic reaction to the medicine that causes harm to the animal, general liability coverage can help protect your office and business from the associated expenses and potential legal fees. Your assistant or intern provided services to your customer and upon completion of providing the services; it caused harm to the customer’s pet.