WEDNESDAY, NOVEMBER 7, 2012
 Most businesses owners learn rather quickly that purchasing insurance is one of the many things that are necessary to keep a company alive. To make things more difficult, there are several types of insurance that a company will need. However, there is above and beyond one type of policy that all business owners should consider: general liability insurance, also known as commercial general liability insurance.
Round Rock General liability insurance protects against a majority of things that could possibly bankrupt a company, but there are also a few things that most won’t cover. Knowing all of these simple nuances will ensure that a company has the proper coverage to protect itself.
What is Commercial General Liability Insurance
Before settling on a type of insurance, it’s important to fully understand it. A general liability insurance policy covers incidents in which the business would usually be held liable. This means that if someone is injured on company property or damages occur to property or other individuals as a result of the business owner or employees, the company’s assets will be protected from litigation. These policies will cover medical expenses, legal defense costs, and court awards if the company is successfully sued.
There are often times when a business owner doesn’t actually own the property where the company is located, so commercial general liability insurance can protect in these instances as well. If a building that the business owner is renting is destroyed by fire or another covered catastrophe, the policy will take over the liability that the tenant (typically the business owner) would usually face. A policy like this can even cover court awards and legal defenses related to claims of libel, copyright infringement, misleading advertising, and slander.
When General Liability Insurance May Not Be Enough
Just like other insurance policies that a business owner has to acquire, commercial general liability insurance will not cover every contingency. There are several things that are worth mentioning in today’s world that are not covered by these policies, including war, damage caused by the use of nuclear materials, and acts of terrorism. These are obviously extreme cases, but there are other more everyday instances in which a general liability insurance policy wouldn’t cover a business, such as
- Any damages caused by willful neglect
- Incidents related to professional liability, such as medical malpractice
There are several other instances in which general liability policies may not apply, but these can vary between policies and localities.
To ensure full protection, business owners should ask their agent about an umbrella policy or a difference in conditions policy. Both of these plans will extend additional coverage to areas that need it. Furthermore, general liability insurance will also not cover incidents that are normally handled by car insurance or worker’s compensation insurance, so it is imperative that companies get a policy to protect them from common contingencies that could potentially put them out of business.
General liability insurance is an absolute necessity for any business owner. Even when a company isn’t in an industry where injuries are likely, accidents can happen at any time. The litigious world we currently live in almost guarantees that someone will be there to file a lawsuit when these accidents occur. One simple and unexpected incident can completely bankrupt a person’s enterprising dream, so anyone who wants to protect his or her livelihood and business assets should look into getting commercial general liability insurance coverage.
Call a Contractors Insurance Services agent at 512-518-6292 to go over your business’s specific general liability insurance needs today!
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