How General Liability Insurance is Defined

General liability insurance is a type of insurance that is used by business owners when some type of loss occurs. Originally, when an employee or business would incur a loss, other employees would form a group to collect enough money to donate to whomever needed it. Happily, now businesses have the ability to purchase general liability insurance, which can cover bodily injury that results in an actually physical damage or loss, property damage or loss, personal injury and slander or damage to reputation, and even advertising injury due to negligence that result from the promotion of goods or services.

The amount of insurance a company would need would depend on this size of the company, number of employees, and several risk factors that may require more insurance. Larger companies with several employees should opt for larger general liability insurance plans, especially if the employees work in hazardous conditions like those found in construction sites.

Businesses may also be required to purchase larger plans if they have expensive goods on the business site, because they would need to be covered by the plan in case anything were to ever be damaged. Each company can decide what they would like and not like to be covered by the insurance plan, but it is important to make sure all goods and employees are covered since almost anything can happen.

Most large companies should purchase at least $2 million in coverage, but luckily it isn’t on a dollar-to-dollar basis. This means that if a company would like to double their coverage, it won’t be twice the price. The price of general liability insurance is mostly based on the size of the business, which is either measured by square footage or number of employees. Businesses can also purchased additional coverage to protect themselves from personal actions taken by their company, and suits larger companies with a board of directors.

Having general liability insurance is important for almost any company, because anything can happen and a business can be held responsible. Even the smallest companies run out of a tiny office should have enough general liability insurance to cover their company, because there is always a chance that someone can get hurt or damage their goods.

General liability insurance will be able to financially help out a company with a policy, and can help to replace damaged goods and cover hospital bills for anyone injured. General liability insurance will keep businesses from being sued if a mishap were to occur, meaning that the business does not have to go bankrupt from having to pay hospital bills or replace damaged goods.

General liability insurance makes it possible for many different businesses to function everyday, without having to worry about being sued or replacing damaged goods. General liability insurance is a must have for almost any company, and it has helped thousands and thousands of companies in the past get out of many different situations. If you have a business and would like to learn more about general liability insurance, you can contact your local insurance agent and they can answer any questions and provide a quote for your business.