Commercial General Insurance, also commonly known as liability insurance for business is an insurance protection for business owners. It is set up against property damage, commercial and advertising havoc or any injury. It is also liable in case of false advertising and any kind of bodily injury within business premises. It also covers all the expense suffered by a third party as a response to your business activities. These days, the trend among farmers and various automobile trading companies to go for business liability insurance is becoming common.
This type of insurance is a protective shield against court costs and legal costs. A part of business liability also includes “product liability policy”. All those injuries and mishaps which are an outcome of failure of machinery and goods being used in industry or studio come under the category of product liability
Liability insurance for business usually works on making claims. Claims must be made within policy period, which involve retroactive dates. Any claim made by insurer outside of retroactive date is not covered. Usually retroactive dates are offered against higher premium costs.
Setting up business is all about risk and one must always estimate the probability of something that may go wrong. In such case, your business is held liable for protection in case you have an insurance. All those businesses that generate revenue must have business insurance as it provides businessmen with a peace of mind against various catastrophic incidents. Even if their claims are very high, it must be opted because in case of any incident, even if your faculty is not at fault, it may take a lot of money to defend yourself via legal procedure.
What Factors are Considered:
Liability Insurance for business largely depends on the type of business you do. If your business deals with production of inflammable products, like body sprays, paint or matchboxes, there is a heavy risk of fire. In steel or cement industry, there are risks of various events leading to death of workers, etc. In potentially dangerous businesses, the premium for liability is higher. If you are running a dance institute, any kind of injury of dancers, that results due to failure of props being used in your studio can be excused given you have liability insurance.
Aspects covered for Liability Insurance:
It covers all subsidiaries and office branches of your business, the building and all the staffs working, including directors, executive managers, employers and employees. If your business is such that it conducts various activities and public events, they are also covered in your liability insurance for business. However, it is always advisable to consult insurance company to confirm whether it covers any particular event or not.
Different types of businesses covered by liability insurance for business include: farming, trading company, repair business and domestic service, hospitality business, health and medical services, retailers, property owners business and motor trade insurance, etc.
These days, with much of insurance companies relying on online methods, you can also make a claim for business liability online. In case of any catastrophic event, you have to give a detailed information of what happened, you choose a repairer or an inspector and allot a time to have the whole scenario inspected.