Business General Liability Insurance to Protect Your Company
What purpose does business liability insurance serve to companies?
You may think why would a business need liability insurance? A business needs liability insurance so that in case of some legal issues, lawsuits, or damages to the business, the business will not need to pay for the expenses itself instead the insurance policy will cover any financial costs incurred. For example, if a customer gets hurt on a business property he might file a lawsuit against the business, liability insurance policy helps in covering those claims. The insurance policies secure the financial interests of business owners from penalties they may face from prosecution pursued against them while likewise taking care of the related legal expenses and property damage. Without business insurance, the owners may need to pay for exorbitant damages and legal expenses against their organization by their employees or investors. Contingent upon the occurrence, this could be a financially wrecking situation for business owners.
What does a business liability insurance policy cover?
You may wonder what exactly does the business liability insurance policy cover? The insurance policy typically covers:
- Bodily damage: which includes any type of physical damage done by the business or its employees to others.
- Legal Expenses and Penalties: the expenses to defend against legal claims, judgements, and lawsuits within the limit of your insurance policy coverage.
- Property damage: any damage that occurred to the property of a client by the employees of a business.
- Personal damage: slandering, defamation privacy invasion of another person due to the business’ actions.
- Copyright infringement: legal claim due to the use of someone else’s work in your business without their permission.
- Advertising damage: caused by your business’ advertisements.
Is Business General Liability Insurance Required by the State of California?
General Liability Insurance is required for most business owners by the State of California. The state requires two types of insurance policies; workers compensation insurance if the business has employees and business automobile insurance policy if it uses cars and trucks for business purposes. The other insurance policies are optional for businesses but to be on the safe side it is wise for a business to get a general liability insurance policy as the California state courts award large liability penalty against the businesses. The liability insurance policy helps a business pay for the injuries or damages to others brought about by the activities of the business, or its workers. General Liability insurance coverage is intended to shield California business owners from direct or indirect damages by the business to other parties. These damages could be in any form.
In short, a business general liability insurance helps cover; expenses for property damage claims, medical bills if someone gets injured at the company, advertising damage claims against the company, expenses to handle those claims, court expenses, penalties, and settlements for the claims. However, general liability doesn’t cover everything. For the purpose of certain claims, a business owner will need different kinds of liability insurance to give the business more security.
Prevot & Associates can help provide the best Business General Liability Insurance options for your business. Please call us at (408) 872-1322 to get expert advice and a FREE insurance quote.