Commercial General Liability Insurance provides protection against claims of bodily injury or property damage for which your business may be liable. Unfortunately for every business owner, the chances of being sued have dramatically increased in the last decade. Fortunately for small business owners, here are just a few ways Commercial General Liability Insurance can protect your business:
A Commercial General Liability Insurance policy is designed to provide financial protection in case your business is ever sued or held legally responsible for some injury or damage. Typical expenses a Commercial General Liability Insurance policy may cover include:
What coverages can Commercial General Liability Insurance provide:
As a business owner, you never like to think that something your company does or doesn't do could injure, or even cause death to a third party. But it's always comforting to know that if you are ever held legally responsible for such an injury, sickness or disease, Commercial General Liability Insurance will pay the affected person or organization for:
Regardless of how careful you may be, you may find yourself in a situation where something your business does or doesn't do damages someone else's property. Even if you don't physically damage that property, you may do something that actually prevents its owner from continuing to operate their daily routine. If so, you will have the peace in mind knowing that Commercial General Liability Insurance protection will compensate the property owner for either:
Products & Completed Operations
Commercial General Liability Insurance includes liability protection for your company's completed products or services. This means that, if an injury ever resulted from something your company made or some service your company provided, your policy would pay for the resulting damages and any legal expenses (up to your policy's limit). Also, if you were sued because of these damages, your policy would cover related defense costs regardless of who was at fault -- in addition to your policy's limit.
Commercial General Liability Insurance protection extends to any liability you may assume by entering into a variety of different types of contracts, including:
As long as you're not in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages, your Commercial General Liability Insurance policy will protect you in case someone claims you are legally liable for a liquor-related accident. This means that, as long as your don't charge for the alcohol, you would be covered if you occasionally distribute alcoholic beverages -- such as at any annual company picnic or a holiday office party.
Employee Injuries / Disabilities
If you one your employees ever sues you for an injury that occurred during business hours, your Commercial General Liability Insurance policy would not cover any damages or expenses. Rather, this type of protection would be provided strictly by your Workers' Compensation Insurance policy.
Hired Auto & Non-Owned Auto
Hired Auto & Non-Owned Auto coverage is typically added as an endorsement on a Commercial General Liability Insurance policy. When there are no vehicles titled under your company name this coverage will meet the contract requirement for Commercial Auto insurance.
Hired Auto coverages replaces or qugments the liability coverage offered by automobile rental agencies. However, the vehicle must be rented in your company's name and this does not replace the physical damage coverage that applies to any damage you cause to the vehicle you are renting. You should still obtain physical damage coverage from the rental agency.
Non-Owned Auto coverage protects your company in the event that your company is sued as a result of an automobile accident that you or one of your employees has in a personal vehicle during business hours. This coverage will not protect you or your employee personally, only your personal auto insurance policy will protect that exposure.
Legal Defense Costs
Even if your company is not legally responsible for some claim a third party makes against your business, it can be quite expensive to defend yourself against such claims. Fortunately, your Commercial General Liability Insurance policy will typically pay for:
If someone is accidently injured either by you or at your business site, Commercial General Liability Insurance will pay for medical and funeral expenses incurred within one year of the accident (up to your policy's liability insurance limit). For example, if a customer slipped and fell on your premises and had to undergo medical treatments.
Something your business either does -- or fails to do -- may not physically harm a personm but it may personally injure them. If so, you'd want to know that your Commercial General Liability Insurance would protect you from any lawsuits arising from such an injury. Most Commercial General Liability Insurance policies provide coverage if you are accused of:
If your business is ever sued because of something that happened during the course of advertising your company's own goods, products or services, be sure that your Commercial General Liability Insurance policy will provide valuable liability protection. Such advertising injuries may result from:
If you would like an analysis of your current Commercial General Liability Insurance Policy/Coverages, or need to secure a Commercial General Liability Insurance policy right away, Prime Star Insurance Services is there to help. Our highly dedicated and experienced licensed Agent's are standing by to help you find the best coverages available in the market so that your can feel secure that your business is protected against any potential risk that may possibly harm your business. Contact us today for your free consultation.