FRIDAY, OCTOBER 16, 2020
One thing you never want to have in your business is a dissatisfied customer. Unfortunately, accidents happen from time to time, and when they do, you might owe those affected both an explanation and compensation. This is particularly true if the accident is your fault, or if the affected party sues you because they place the blame on you in any case. 
In such situations, you might have the benefit of being able to turn to your company’s general liability insurance. However, this coverage will only apply if the claim is covered under the terms of the policy. Since the most basic general liability insurance does not cover every liability present in the modern business, it is important to always consider ways to increase, augment and expand your coverage.
Understanding General Liability Insurance
A liability insurance policy pays when you make mistakes (even unintentional ones) that harm others. A general liability insurance policy is the standard, foundation coverage that most businesses need. It can supply benefits such as third-party:
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Bodily injury coverage
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Property damage coverage
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Personal injury coverage (coverage for libel, slander, etc.)
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Product-related injuries or completed operations injuries
Though expansive, this is not all the protection that might come to your aid in times of crisis. Therefore, you will often have to expand your liability coverage in several ways. This might include:
Your policy will only pay up to the maximum limit it carries. So, if you have $500,000 worth of bodily injury liability coverage for your business, then this is the maximum you can receive in case of a claim. It is therefore important to increase your coverage to a high enough limit that is adequate for you. Ask your agent about the common limits of others in your industry for guidance.
An endorsement is an expansion of your general liability policy to allow it to cover more liabilities than it ordinarily would. Some of those that you might add to your policy include cyber liability coverage, errors & omissions insurance, employment practices liability insurance, directors & officers' coverage and more. Each of these endorsements pertain to specific liabilities that might be present in your operation.
Even if you buy extensive general liability coverage and endorsements, there are still liability claims that might slip through cracks. In this case, an umbrella liability policy might be one of your solutions. This coverage supplies protection once a claim exceeds the limits of your general liability coverage. It can also pay the entirety of certain claims if your general liability policy will not pay at all.
Always talk to your agent about the best way to increase your general liability policy and tailor it to your benefit. After all, it’s some of the most important coverage you can have for your business’s long-term financial security.
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