What is not protected under general liability insurance

Saturday, August 17, 2013

What is not protected under general liability insurance

Shall I ask it somewhat differently? If you had been running a business for a while, and you are lucky enough to scrape through without any controversy, or perhaps, never faced the prospects of a lawsuit, now is your time to wrap up your business with a cover. Not many businesses these days are blessed. It has become a routine for commercial establishments to come up against damages, and lawsuits have become more prevalent.  The best way, therefore, should be to get under the garb of general liability insurance. 

Business houses should know that if, on one,  hand, the insurance could be a perfect way to get protected from damages, on the other hand, there are several instances, when your business might not get the protection you seek for. Learn the finer details of insurance, before you turn the pages to explore the quotes for general liability

1.       The general liability insurance doesn’t insure you against professional mistakes that you may do. The general insurance doesn’t really help a company that has a service oriented framework. For instance, if your business runs a consultancy services, and your opinion or advice, causes damage to your client, and then your client flies a lawsuit against your firm. In such circumstances, the general liability insurance would not come to your rescue.

2.       What happens when an employee working for your business is injured while performing chores? The general liability insurance will not be able to protect your employee or your business. The general insurance is typically a broad insurance, and conditions such as these will have to be met by a separate insurance cover.

3.       What happens if you hit your car while on your way to a highly important business meeting? If you believe that the general liability insurance will protect you against damage arising out of your car accidents, you are mistaken. The general insurance will not be enough; you will have to buy separate auto insurance coverage against such damages.

4.       One also needs to understand that general liability insurance doesn’t provide protection arising out of a client’s lawsuit if an employee gets into a fight with one or more of the firm’s clients. The business needs separate insurance cover for such acts.

5.       What if your company’s product injures or harms a customer and the customer, in turn, comes up with a lawsuit against your company? The general liability insurance will not protect from damages arising out of such lawsuits. There’s a separate insurance cover called, product liability insurance cover, which will be needed for protection from such damages.

Author- Danny Liew

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