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Looking
for business liability insurance?
Liability
insurance (also known as casualty insurance) refers to
coverage for injury to another person or damage to a
person's property for which you are legally responsible.
Liability insurance covers claims as a result of actions for
which your business is legally liable (responsible). General
liability is a standard element of most business owner's
policies.
General
liability insurance will cover your business in case of
bodily injury to someone or damage to someone's property
that occurs on your premises. For example, this type of
insurance would cover you should a client trip over a loose
phone cord in your conference room and break an arm.
Similarly, if you were to accidentally knock over and break
an expensive antique at a client's premises, your general
liability policy would reimburse the client for the damaged
property.
A
Comprehensive General Liability (CGL) policy is designed to
provide coverage to third parties for the following:
- Personal
and Advertising Injury
- Fire Legal
Liability, which is often mandatory if you lease your
premises. This protects you in the event your negligence
results in damage or loss to your landlord's property.
For example: you mistakenly leave a small electric space
heater running and go home for the evening. During the
night, the heater shorts and starts a fire, resulting in
fire and smoke damage to your landlord's building. In
this case, the negligent act of leaving the space heater
on caused the loss. This is where Fire Legal Liability
protects your investment.
- Products
and Completed Operations
- Medical
Expense or medical payments
- General
Liability for your premises. The best illustration is
the common "tripping over the torn carpet,
resulting in an injury" loss.
On occasion,
some policies will exclude Products and Completed Operations
and/or Personal Injury and Advertising Coverage depending on
the services your business provides. In these instances, a
Professional Liability, Malpractice, or Errors and Omissions
Policy might be available for your type of operation that
will cover the errors and omissions that might result in
suits against your company. This is particularly true of
professions that are held to a higher degree of care or
standard, for example, attorneys, engineering consultants,
insurance agents, realtors, doctors and dentists.
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