One of the most basic insurance plans for a business is a general liability policy. Commercial liability insurance can substantially minimize a business’s risks and protect them financially. However, it is important to understand what this policy covers. This way you can set the right limits and invest in additional plans if necessary.
Premises and Operations
Lawsuits often occur because of accidents on the premises of a business or during operations. General liability insurance protects against property damage and bodily injury during these accidents.
Products and Completed Products
Commercial liability coverage can also protect your business from faulty products. In the event of an accident related to a product, your business will be covered for property damage and bodily injuries.
Indirect of Contingent Liability
The above scenarios provide coverage when a business is directly responsible for an accident. In scenarios where a business is liable because of their subcontractors or independent contractors, general liability coverage is important. This way you can minimize financial losses and have peace of mind when you hire outside contractors.
Nearly all businesses can benefit from having commercial liability insurance. Even with strict safety measures or few employees, accidents can happen. Contact an insurance agent today to determine what general liability policy is right for your needs.