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What is General Liability Insurance?
General Liability Insurance covers the costs of defending against covered lawsuits and paying settlements or judgments if the business is found legally liable. This type of liability coverage is a core policy most businesses carry to protect against injury or damage claims arising from their products, services or operations. It provides crucial financial protection for the significant legal expenses and settlement costs associated with liability claims made against a company.
How Does General Liability Insurance Work?
General Liability Insurance protects businesses from third-party claims of bodily injury, property damage, personal injury and advertising injury by covering defense costs and settlements. This essential policy provides financial protection against liability claims arising from a company's products, services or operations.
Here's how it works:
- You take precautions like implementing safety protocols, proper training and risk management procedures to prevent incidents at your business premises or job sites.
- However, preventive measures have limitations, and accidents or oversights can still occur, leading to bodily injuries, property damage or personal and advertising injuries.
- If your company faces a liability claim by a third party alleging such injuries or damages, a General Liability insurance policy provides coverage for the resulting expenses and legal liabilities.
- When a covered claim arises, the general liability insurance covers costs like medical expenses, legal defense fees, settlements or judgments awarded to the third party, as well as other claim expenses for your operation.
What Does General Liability Insurance Cover?
Bodily Injury
Covers claims arising from injuries to third parties caused by your business operations or employees.
Property Damage
Covers claims for damages to third-party property caused by your business.
Personal and Advertising Injury
Covers claims involving libel, slander and copyright infringement in ads.
Medical Payments
Provides coverage for medical costs if someone is injured on your premises, regardless of fault.
Products-Completed Operations
Extends coverage to bodily injury or property damage caused by products you made or work you completed.
Legal Defense
Pays for lawyers to defend your company against covered liability claims or lawsuits.
Settlements/Judgments
Covers court-ordered judgments or settlements you legally must pay to third parties.
What is Not Covered?
General Liability policies exclude claims arising from intentional or fraudulent acts committed by the insured. Professional liability claims related to services rendered or misconduct are not covered under a standard general liability policy. Employment-related claims like worker injuries (covered by workers' compensation), harassment or discrimination are also excluded. Damages to the insured's own property or product recalls are not insured events under most general liability insurance contracts.
How Much Does General Liability Insurance Cost for a Business?
General Liability Insurance premiums vary depending on the size of the business, industry class, location, claims history and coverage limits selected. Smaller businesses may pay a few hundred dollars annually for a basic policy, while larger operations face much higher premiums into the thousands of dollars. Riskier industries like construction tend to have higher rates compared to lower-risk office environments. Ultimately, insurers analyze multiple rating factors specific to each applicant to determine appropriate pricing.
Why Choose BenePac for General Liability Insurance?
With over 40 years of expertise in delivering employee benefits and insurance solutions, BenePac is the ideal choice for General Liability Insurance. Our tailored approach ensures your insurance policy matches your business requirements. Unlike generic options, we conduct thorough risk assessments and operational analyses to craft a package with optimal coverages and limits. Whether you operate a large corporation or a small business, BenePac offers affordable solutions to provide financial security and peace of mind.