General Liability Insurance
General liability insurance provides financial protection for companies that face loss claims from customers or other parties.
There is always the risk that something could go wrong in your business. Your product could fail. Your employee may damage the property of a customer during repair work. When this happens, you may need to turn to your business insurance for the financial support you need.
What Does General Liability Cover?
General liability insurance usually protects a business from claims made against it by non-employees. This includes your customers, vendors, contractors and third parties.
If that person suffers financial loss, your business insurance can cover the costs. This may include replacing damaged property owned by the customer or third party. It does not cover the losses your business may suffer, though. Here are a few things to keep in mind throughout this process.
- If your customer suffers loss due to business negligence, your insurance policy may help to replace or pay for the lost item.
- Your business insurance will need to verify the loss occurred. To do this, you will need to document the incident and then file a claim with your insurance company.
- Your general liability insurance will cover costs up to the value of your policy. In situations of substantial loss, it may be necessary to have an umbrella insurance policy to extend your protection. This may be necessary on large contracts. Bonds can also help to reduce some of these risks.
The first step in claiming insurance is to determine what happened and who is responsible. If you are negligent in the loss of property, work with your agent to determine the next steps. Often, not doing so can lead to a lawsuit. Your insurance will help to cover claims against you as well as your legal defense in most cases.
Many factors play a role in the determining whether your business was negligent. Don’t assume you have no help when there is an incident. Turn to your business insurance provider for help defending your business. They can help you understand the claims and your payment options. General liability insurance can be very comprehensive and valuable.
We offer many resources on our website that are dedicated to general liability insurance and other Raleigh business insurance types. Do you have questions about general liability insurance? Call us today at 919-926-7166.