Things To Know About General Liability Insurance
General liability insurance (GLI) is a fundamental type of business insurance that offers protection against various risks. First Choice Agency provides the same in Queens, NY, Brooklyn, Amityville, Massapequa, Farmingdale, VA, Jamaica Queens and surrounding areas.
These are the key aspects to understand:
Coverage
Bodily Injury: Covers medical expenses, legal fees, and potential settlements if a third party is injured on your business premises.
Property Damage: Pays for damages to someone else’s property caused by your business operations.
Personal and Advertising Injury: Covers claims related to libel, slander, copyright infringement, and advertising errors.
Medical Payments: Covers medical costs for injuries sustained by a third party on your business property, regardless of fault.
Legal Defense: Pays for the cost of legal defense if you are sued, even if the lawsuit is groundless.
Who Needs It
Small Businesses: Essential for businesses with a physical location where customers visit.
Contractors and Freelancers: Often required by clients to have coverage before starting work.
Large Corporations: Necessary to protect against extensive risks and potential high-value claims.
Benefits
Financial Protection: Helps prevent significant financial loss from lawsuits and claims.
Reputation Management: Assists in handling claims that could damage your business reputation.
Contractual Requirement: Many contracts require businesses to have GLI to work with clients or landlords.
Exclusions
Employee Injuries: These are typically covered by workers’ compensation insurance.
Professional Errors: Professional liability insurance (errors and omissions insurance) covers these risks.
Intentional Acts: Willful negligence or malicious acts are not covered.
Automobile Liability: Requires separate commercial auto insurance.
Cost Factors
Industry Risk: High-risk industries (e.g., construction) may have higher premiums.
Business Size: Larger businesses or those with higher revenue might pay more.
Claims History: A history of claims can increase premiums.
Understanding these facets of general liability insurance helps businesses secure appropriate coverage, mitigate risks, and maintain financial stability. It is advisable to consult with an insurance professional to tailor the policy to your specific needs.
Would you like to discuss? Please give us a call, or email us!