General liability insurance is the foundation on which owners looking to protect their company or property build off of. If you are running a small or large business in any industry, having liability coverage can safeguard your company in the event of a lawsuit brought against it. Having a comprehensive policy in place will give you as the policyholder peace of mind, especially in today's society where many people are looking to take legal action in hopes of a huge award amount.
- General liability insurance is a comprehensive policy that pays for just claims brought against a policy owner. Under a general liability policy, the insured is responsible for damages, loss and/or injuries suffered by a person or property. This coverage is usually supplemented with smaller, more specific policies such as insurance for flood, fire and theft. However, by having a "bundled" policy, the liability amount may be reduced in exchange for lower premiums. Businesses wanting to determine their own liability amount may opt to buy this coverage separately.
- Having a general liability insurance policy will enable a business to protect its assets by deferring liability acceptance to their insurance company. Insurance companies will conduct their own careful investigation which will eliminate any frivolous or unjust claims brought against their client. The insurer will also pay for your legal costs during the litigation period. If the insured company is found liable of a covered event, the insurance company will pay the award amount up to the coverage limit paid for by the insured. Not having a comprehensive policy can cause your company to fold if the litigation is lengthy (and expensive) and the award amount overwhelms the company's assets.
- General liability insurance works like any other insurance policy. Its main objective is to make someone or something whole again. An insurance company considers several factors such as risk, the coverage amount, size of the company and history of claims in the industry before determining a premium amount. The premium reflects what the insurance company feels is the level of risk it is taking in providing coverage for the applicant. It is the insured's responsibility to make timely premium payments in order to have coverage.
- You may want to revisit your policy every year or two to make sure it has kept up with the times. What might have been covered under your policy when you bought it might not be now and vice versa. You wouldn't want any surprises when someone brings a lawsuit against the company. It is also wise to reevaluate the coverage amount and make necessary changes. Making it more affordable may not be the best option if covering the award amounts paid in your industry requires higher premiums.
- it is important that business owners not only have this type of insurance, but also possess an adequate amount in case they are found liable by the courts. Although the premiums may be expensive, it pales in comparison to being responsible for paying a huge judgment award because of not having insurance. You may find that not having enough coverage may require you to pay the amount in excess of your limit, which could also be very expensive.
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