No matter how careful you are, no matter if you take all the precautions required to maintain a safe environment in your business premises, there is always the chance of an accident. Accidents that may cause damages to someone else’s property or any injuries to a third party caused by you are covered under this policy. At the off chance that something like this happens, you could be up against a lawsuit.Even if you defend the lawsuit successfully, the legal expenses alone are capable of putting you out of business, or costing you a great deal in assets and capital. Moreover, here is where a general liability insurance policy kicks in. 



What does this insurance protect you from?

The first thing to understand about the policy is that it covers your company as a single entity, as well as each individual that works for you. Here is what it protects:

Defending a lawsuit

The insurance company will provide you with a lawyer to defend your case and will pay their fees, as well as the court expenses, witness fees, and all other expenses of the sort.

Damage to third party property

This part covers payouts that are awarded by a court and are related to damages to someone else’s property, because of the actions by your business. The payable amounts cannot exceed the coverage limits.

Medical Expenses

If a person gets hurt on or in your premises and is awarded a court settlement, then the insurance will pay up to the policy’s coverage limits for medical expenses, and all other compensations ordered by the judgment.

Optional coverages that can be combined with General Liability

While the standard protection offered by a GL policy is designed to cover you against the aforementioned, there are other issues attached to your business operations that you may need coverage for, such as:

Completed products

It does not have to be within your premises that you may be considered responsible for an accident. You may also be liable if a product you produced, or a service you rendered, resulted in an injury to a third party. 

Personal and Advertising Injury

Apart from physical damages, you may be sued for non-physical damages such as theft of copyrights, other intellectual property, violating privacy rights and brand infringements.

How much would a General Liability Insurance cost?

The business size, its type and its annual revenue are the main factors that shape the cost of a GL policy.