Liability Insurance: FAQ
General liability insurance protects your business, big or small, from a third-party claim of bodily injury, associated medical costs or damage to property.
Liability insurance can cover bodily injury, personal injury and property damage. General liability is also commonly known as commercial insurance, commercial general liability or business insurance.
In some cases, if the claim is denied or if the insurance company is refusing to pay the full amount owed under the policy, then the policyholder might need legal representation. At Germain Law Group, our attorneys understand the most frequently asked questions by policyholders or business owners about liability insurance and claims filed under these policies.
Frequently asked questions include:
- What is General Liability Insurance?
- What does General Liability Insurance cover?
- Why do I need General Liability Insurance?
- How much does General Liability Insurance cost?
- Is Cyber Liability Insurance included in General Liability Insurance?
- What is Cyber Liability Insurance?
- Is Product Liability Coverage included in General Liability Insurance?
- What is Product Liability Coverage?
What is General Liability Insurance?
General Liability Insurance, also known as Commercial Liability Insurance, is an insurance policy that covers third-party lawsuits over bodily injuries, personal injury, and property damage. A "third party" can be anyone other than the insured's employee such as a customer or business partner.
- An example of bodily injury would be if a client or customer at your business trips and falls over something inside your business and injures him or herself, then you are legally liable for their injury.
- An example of personal injury would be if one of your employees, outside of work, speaks about a client in a slanderous manner and that client learns about the slanderous remarks and sues for slander.
- An example of property damage would be if one of your employees backs their car up into a client's car in the parking lot of your business.
What does General Liability Insurance cover?
General Liability covers investigation claim costs along with the cost of defending against third-party lawsuits. General Liability Insurance pays the attorney fees, court costs, settlements, and court-ordered judgments.
If someone was injured on your business' property, General Liability Insurance can cover his or her immediate medical expenses. In addition, if someone's property was damaged on the grounds of your business, your GL policy may cover the cost to repair or replace the damaged piece of property.
General Liability is considered a must have policy for most business protection plans. It safeguards against some of the most common and unexpected risks business owners may face.
Why do I need General Liability Insurance?
As a business owner, you should consider General Liability Insurance for your business if you or your employees interact face to face with your clients or customers, have access to client's equipment or belongings and if you represent your client's or customer's business.
You should also probably have General Liability Insurance if you or your employees use third-party locations for any business related activities or if you are required to have General Liability Insurance before entering into a contract.
How much does General Liability Insurance cost?
The cost of General Liability Insurance depends on several factors such as:
- the insured's industry;
- years of experience;
- company size and;
- business location.
For example, a lawn care/ landscaping or construction & contracting business might pay more for General Liability Insurance per year than an advertising or graphic design company would for obvious reasons.
Is Cyber Liability Insurance included in General Liability Insurance?
No, Cyber Liability Insurance is not generally included in General Liability Insurance but can be added to a GL Insurance policy.
What is Cyber Liability Insurance?
Cyber Liability policies cover a business' liability for a data breach in which a business' customers' personal information, such as Social Security or credit card numbers, are exposed or stolen by a hacker who has gained access to the firm's online database.
Is Product Liability Coverage included in General Liability Insurance?
Product Liability Coverage is included in most General Liability Insurance policies. Product Liability plays its part when a customer claims your product or client's product/ service caused them physical harm. For example, say your client makes a product with an undisclosed ingredient that causes an allergic reaction. If your client is sued over the injury, GL can pay for legal expenses just as long as the policy includes Product Liability coverage.
What is Product Liability Coverage?
Liability insurance protects a business or company from claims related to the production or sale of products, food, medicines and other goods to the public. Product Liability Coverage covers the manufacturer's or seller's liability for losses or injuries to a buyer, user or bystander caused by a defect or malfunction of the product, and, in some instances, a defective design or a failure to warn.
Attorney for Liability Insurance Coverage in Sarasota, FL
If you have questions about liability insurance coverage in Sarasota, FL, or the surrounding areas, then contact an experienced insurance attorney at Germain Law Group. We help individuals settle disputes with their insurance company after a denial or the failure to pay all of the money owed under the policy.
Meet Our Attorney
Michael B. Germain
Michael B. Germain is the founder of the Germain Law Group. For over a decade, Michael has been involved in litigating insurance claims and complex commercial matters.