General liability coverage is a type of business insurance that covers risks such as personal injuries and property damage caused by the business, its products, or its operation. Protecting your business means investing in comprehensive liability coverage for any potential exposure.
Commercial General Liability and What It Accomplishes
Understanding the fundamentals of general liability policies for businesses can help you get the coverage you need.
The Importance of Comprehensive Business Insurance
Every business faces potential liability risk, whether it refers to the chances of someone falling on your property or even an injury caused by a product you manufacture. As a business owner, you need to identify those possible liability risks and ensure sufficient insurance coverage to protect your interests. A liability claim could financially devastate your business without the right insurance protection.
The Types of Commercial General Liability Coverage
When you choose your liability policy, you need to specify the type of coverage that you want. Premises coverage protects against liability exposures on your company’s property but does not cover anything beyond those boundaries.
You can add additional coverage for other locations if you have employees traveling to customer sites or working offsite. Product coverage is vital for manufacturers and retailers to protect against consumer injuries when using your company’s products.
The Exclusions in Commercial General Liability Policies
Review the policy exclusions closely before you buy your policy. Every business insurance policy has exclusions, including intentional actions by the policyholder and losses sustained while committing a crime. Most general liability policies also exclude injuries caused by a motor vehicle and damage to the insured company’s property. Other guidelines apply to those types of losses.
The Benefits of Excess General Liability Coverage
If your existing general liability policy feels insufficient for your company’s risks, consider an excess liability policy to help fill coverage gaps. Your excess liability coverage takes effect when your general liability does not apply, or you exhaust your policy benefit.
The Basics of Liability Policy Selection
There are two basic types of liability policies for businesses. A claims-made policy extends coverage for claims no matter when the incident actually occurred. On the other hand, an occurrence policy covers claims as long as the incident happened while the policy was in force, even if that policy had already expired. Consider the types of risks your business faces to choose the right solution.
The Cost of Liability Business Insurance
The cost is essential when considering what to know about commercial general liability. That cost depends upon many factors. The industry that your business is in plays a role because higher-risk industries face higher premiums. Smaller businesses have less risk exposure and will see lower costs for liability policies. In addition, your premiums depend upon the level of coverage you choose.
The right business insurance protects your company’s financial interests in the event of a loss. Proactive insurance investment gives you peace of mind and ensures that your company is ready if something occurs.
About BTC Insurance Services
Founded in 2011, BTC Insurance Services has proudly served Utah businesses with comprehensive and custom-tailored insurance coverages for a decade. We pride ourselves on fostering long-term client relationships with a personalized and hands-on approach, and have established a reputation built on quality and transparency. For more information about our products and services, we invite you to contact one of our reputable agents today at (855) 944-3457, or send us a message here.
