General Liability: What Does It Cover For Your Business?

​As a business owner, one of the things you should watch out were injuries or damages made against your company. It is essential to know what to do and how to help you if such instances arise. Here, enters your general liability insurance. Continue to read to find out more about this type of coverage and learn what it can cover for your business.

What is General Liability Insurance?
If a third party filed a claim against your business related to personal, property, or advertising damages the general liability insurance can cover the costs. An example of this is when the customer slips and falls within your business property, the injured can file a claim. With general liability, it can help pay for the expenses to help your business in this kind of situation.

What does it cover?
Third-Party Property Damage - If your business causes damage to another establishment or property, general liability can help cover the cost.  Like a company removes tree stump on another customer’s establishment and one of the stumps rolls over which caused damage to a customers’ or neighbors’ yard. The customer can file a claim against your company for property damage. If you have general liability coverage, the insurance can help in paying the cost for the damage.

Advertising Injury – An example of this was when one of your ads played background music, your business may face copyright infringement filed by the artist who owns the right to the music.

Third-Party Body Injuries – These types of claims happened when a customer injured himself while inside your business property. Like a customer tripping over an extension wire and broke an arm or leg.

Reputation Harm – This happens if your business ad caused harm or damages another business reputation, then the other company can file a claim against you. For example, if someone asked you what you think of the product that your competitors are offering and you provided an opinion which you stated that your product is better than them, then the other entity can file a complaint against you. 

Who needs General Liability Insurance?
It is not a requirement of the state for one to purchase general liability insurance, however without one, you may have to shoulder the whole damaging expenses of the liability claims that are common. Also, it is most likely that you will have to purchase one if you have any plans to contract work from larger businesses.

Conclusion:
Running a business is challenging. It is better to prepare for any situations that you will encounter. One preparation you can do is purchase an insurance plan to help you in case an unfortunate event happens. Not only it will help you with the costs but it also gives insurance that you are protected. 

At American Eagle Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (225) 667-7377 or Click Here to request a free quote.