Demystifying General Liability Insurance
Everyone is becoming more educated. This is a good thing as our society improves and becomes more civilized. Consequently, we all become more aware of our rights which lead to a more litigious population. On some occasions, small issues are blown out of proportion and become major lawsuits.
In this respect, it is essential for companies to have General Liability Insurance. General Liability Insurance along with Property and Worker’s Compensation insurance are a must-have for every company. These insurances protect a company’ s valuable assets if sued for property damage or personal injury on another party.
Preferred Bonding & Insurance Services offers General Liability Insurance as a stand-alone policy or as a part of a Business Owner’s Policy (or BOP), which already include Liability and Property Insurance.
Still, business owners need to know that Liability Insurance can only cover up to a certain extent. When your business is in need of more liability coverage, you will need to separately purchase a different policy.
Now, how do you know how much coverage your company might need? This depends on two factors: Perceived Risk and Location.
Perceived Risk provides for assessment on the amount of risk that may be involved if your operations accidentally fall short of plans or puts an employee or another party in danger. To contrast, a clothing manufacturer will require lower liability insurance coverage compared to a company that is riskier to operate such as an oil drilling company, construction or other natures of business that require heavy machinery.
When it comes to Location, you need to take into account the state that your company is operating in. Several states in America award high damage amounts to parties who file for personal injury. It’s best to consult with us or your legal department to be better guided in purchasing General Liability Coverage that suits the circumstances established in your state.