General Liability insurance provides for coverage on the maximum amount that your insurer will shoulder when claims are applicable and while the policy is active. Say, a company is covered by the insurer for $500,000 in General Liability. If said company is sued for damages and is fined for $750,000, the insurer will pay the maximum amount of coverage while the company will be responsible for the $250,000 balance.
As added protection, companies purchase Umbrella Liability Insurance to cover for excess amounts or amounts that are above the maximum of General Liability coverage.
In all cases, it is best to document occurrences of accidents as insurance companies require policy holders to report claims as soon as possible. As investigations are conducted, your company’s documentation will be of great use.
An up-to-date and complete set of documents, company-wide quality control measures, well-trained employees and strict work-place safety policies by the company are ways to also help keep your insurance rates down. By lowering potential risks, you keep your protection high.