It’s not uncommon for businesses to be sued for third-party bodily injury or property damage. Protect your company by purchasing corporate general liability insurance
What is corporate general liability insurance?
Corporate general liability insurance is a type of insurance that protects businesses against financial losses relating to claims of bodily injury and/or property damage to third parties. Specifically, the claims will allege or aim or to prove that your business’ negligence is what led to the incident occurring and related damages incurred. Claims can affect a business whether they are brought against the owner, someone else within the company, or someone operating on behalf of the company. Therefore, to prepare for and protect against the reality of third-party claims, businesses should purchase corporate general liability insurance. With such a policy, your insurance provider can cover the costs of legal fees and any compensatory damages awarded against you should you find yourself involved with a lawsuit.
What are the benefits of having corporate general liability insurance?
Corporate general liability insurance policies vary, depending on the unique circumstances of your business and the coverages you choose. However, the following coverage types are commonly found in corporate general liability insurance policies:
- Product liability: This protects your company if a product you sell causes third-party property damage or bodily injury.
- Bodily injury & Property damage liability: This protects against bodily injury and property damage to a third party person or property relating to your business operations.
- Tenant’s legal liability: This coverage may help pay to repair or replace property if the physical space you occupy becomes damaged.
- Personal and advertising injury liability: This coverage can help pay for costs associated with allegations of slander, libel, defamation, and/or false advertising.
Who needs corporate general liability insurance?
Any business that frequently comes into contact with third parties, whether they be vendors or customers, should have quality corporate general liability insurance. Examples of scenarios in which a claim could be brought against your business include if a product you sell causes bodily injury or property damage to another or if your business operations result in third party bodily injury (ex. slip and falls) or property damage (ex. water damage caused by contractor). In either of these scenarios, having corporate general liability insurance would help you avoid the financial pitfalls and out-of-pocket expenses of having to fight a lawsuit on your own.
What is not covered by corporate general liability insurance?
Corporate general liability insurance policies do not include coverage relating to:
- Patent infringement
- Intentional criminal acts
How much corporate general liability insurance coverage do I need?
This varies depending on your business and your contractual obligations. If you aren’t sure how much corporate general liability insurance to purchase, get in touch with ALIGNED Insurance today. One of our dedicated commercial/corporate insurance brokers will be happy to provide their professional opinion on the best coverage options for your business.