General Liability Insurance is also known as Business Liability Insurance is a type of Business Insurance that is designed to protect large and small business insurance owners against liability claims from a third party person. It protects the business owner against claims of bodily injury and property damages that could arise out of the business premises and home offices. Also, out of business completed operations, products, ongoing operations, and advertising injuries.
This insurance could pay on behalf of the insured's liability claims up to its policy limits. Liability insurance policies cover both the legal costs and medical payments for the injury of the third party person if found legally responsible for the incident. However, Intentional damages and injuries to the employee of the insured business are not applicable for coverage.
Business Liability Insurance would cover claims of the third part’s bodily injury. However, only if the insured is legally liable for the third party's bodily injury. And, if the injury arises from the business premises and operations. General Liability Insurance could also cover the insured from a cost of attorney fees if the insured files a lawsuit against the insured. It can also cover the insured from the medical expenses of the injured and other additional expenses such as:
Loss of Income refers to a situation wherein a person who is earning monetarily for his daily living expenses, is terminated due to incidental causes. For illustration, considering that the insured is owning a hardware shop; and, it has a customer who is buying pliers and a hammer on the insured shop. However, one of his assistants accidentally drops the hammer on the foot of the customer breaking his two toes.
To conclude, the customer has to spend the next week on his home before it completely heals. Therefore, the injured customer will have to take unpaid leave due to the incident. Furthermore, the injured engineer demands the business owner to pay for his medical expenses and his income losses. General Liability Insurance would cover the insured for these types of liability claims.
Pain and Suffering is the constitutional term for emotional stress resulting from physical injuries. Therefore, Pain and Suffering could only be covered if the person has direct evidence of physical injury resulting from covered causes. Some damages that are considered to fall under this category are potential suicide and depression. For example, the insured is owning a french fries corner. The insured is preparing to fry french fries due to the demand of its customers. However, he didn't notice that there was a child playing beside his stall. When he drops the fresh fries to the pan, the boiling oil pops and splatter around the stall, causing burns to the body of the child.
The child was already taken to the hospital for the treatment of the wounds. However, the child cannot get any sleep, and if he does, he has nightmares due to the pain from the incident. The customer sues the business owner for Pain and Suffering claims. General liability Insurance could help the insured in settling this type of claim.
General Liability Insurance covers the insured from property damage claims of a third party person. Here are some examples of property damages that are covered. Suppose that the insured is owning a carpentry business. One of its carpenters was contracted to make renovations to his customer's roof.
His carpenter uses a ladder; however, it accidentally falls, which causes damages to the wall of the client's house. The client files a property damage claim and asks for the repainting of his wall. For Example, if the insured is owning a beauty salon near a high-end street in one incident; its beautician accidentally splatters a colored nail polish to the Chanel bag of its customer —the client sues the salon owner and asks for a replacement for her purse.
Employers Liability removes coverage for claims arising from bodily injury of the employee if the injury is sustained as a result of his employment. Workers' Compensation Insurance is the insurance that could cover this type of incident. Also, this insurance is required by law for all businesses in the United States. Get a Free Workers Compensation Insurance Quote from our affiliated insurance agencies here.
General Liability Insurance removes coverage if the damages arise out of the discharge, seepage, migration, and escape of pollutants. Bodily Injury that is due to pollutants is an exclusion from coverage. The term pollutants that are defined in the exclusions are any liquid, solid, or gaseous and thermal irritant. Such as vapor, wind, and fumes that can cause a critical bodily injury to others are not applicable for coverage.
General Liability Insurance does not cover any damages to the property of the insured. Check our Business Owners' Policy page to know more about how to protect your own business from losses.
General liability insurance policy could also cover personal and advertising injury claims. This coverage could protect the business from non-physical damage. It could cover insured business from copyright, advertising infringement, and defamation claims. Here we will give you a list of scenarios that are acceptable for personal advertising injury coverage.
Copyright Infringement in lawful terms is the illegal use of works of artists or other people that are under the protection of copyright law.
Suppose that the insured uses a song of some unknown singer for his restaurant advertisement without proper payment for the use. However, when the original composer of the song hears the advertisement, he files copyright infringement due to using his signature song without permission and payment. General Liability Insurance would cover the insured for settling the lawsuit claim.
Defamation is an action on which could damage someone else's business name. For example, the business of the insured posts an article on an internet website. The posts consist of a statement that business ABC copies other business's products, which badly hurt the image of the other company. Business ABC sees the post and takes legal action, then files a lawsuit against the insured for defamation of character.
Breach of Privacy occurs whenever someone tries to access or share information without legal permission. For further illustration, an insured beauty care shop is selling products. One of its customers is using a whitening soap, which is one of their products. In the shop, the clients must take a picture first before using your product.
This picture is for the business to know if its product is effective and can surely make progress to its client's beauty. However, one of its beauticians posts the photo of the client on the business website page, then uses it as an example of what the business product can do. The client sues the insured for using her photo without consent and breaching her privacy.