GENERAL LIABILITY INSURANCE And Love – How They Are The Same
In the modern society, a small accident can result in protracted and potentially money- sapping lawsuits. General liability insurance, therefore, becomes essential for most companies. General liability insurance protects a company’s assets when it is facing a lawsuit for damages it could or might not have inflicted upon an individual though injury or property damage.
General liability insurance can be bought independently or as part of a BOP (Business Owners Policy). A Business Owners Policy packs liability and property insurance right into a single policy. The liability insurance plan limits, however, are often quite low. Businesses needing a larger coverage usually buy liability insurance being an independent policy.
In a general liability insurance policy, legal costs of a business in a covered liability lawsuit need to be paid by the insurer. Covered liability claims include property damage, bodily injury, personal injury and damages from false advertising, also called advertising injury. Insurance firms also cover general and compensatory damages. However, liability plans usually do not cover punitive damages, because they are deemed punishment for deliberate actions.
General liability insurance policies always declare a maximum amount that insurers need to give through the policy period. Beneath the policy, there is also a maximum amount that the insurer must pay per occurrence. For example, if a company includes a $1.5 million occurrence cap and loses a lawsuit of $2 million; the insurance company is obligated to pay just the $1.5 million; the others should be paid by the business enterprise company.
As a cover against these kinds of circumstances, companies buy umbrella liability insurance, which comes into the picture where general liability coverage stops. Insurance for crafters covers payments that go beyond the company’s policy’s limits and provides extra protection for liabilities not covered in the standard insurance policy.
Generally, there is a requirement for the policyholders to report to the insurance company the moment an accident that can result in a liability claim has taken place. The business owner will have to help in the investigations, forward legal notices, etc.