35 Morningside Drive, Sandringham, Auckland (Next to St Lukes);

What does a general liability insurance cover and not cover?

Almost all businesses operating today can benefit from general liability insurance. General liability insurance protects your business from a variety of possible claims including bodily injury, property damage, copyright infringement, reputational harm, and advertising injury. It can cover the price of repairing the damage. This could include the cost of your legal fees or the cost of getting expert assistance on a particular issue.

Let us take a closer look at each of these kinds of liability claims so you can understand how it can benefit your business.

  • A typical claim is a bodily injury caused by your service. If someone is hurt at your business premises, a general liability policy will pay their medical expenses. A simple fall by a consumer at the firm store or business office could result in a bodily injury claim.
  • Another frequent liability claim is for damage to property. If a person’s property is harmed while visiting your establishment, you may be held legally liable. Property damage claims would also cover damage to a client’s house or other property while you are at work for them. This coverage may also be applied to electronic data damage, it all depends on the policy specifications.
  • Copyright infringement claims arise when you are charged with using someone else’s work without their consent in your business advertisements or other commercial marketing actions.
  • You may suffer reputational damage if you say something negative about another business owner or company in a press interview.
  • Advertising damage can occur when your firm criticises another individual, business owner, or organization.

These types of liability issues are common; therefore, you should protect your business from any hefty charges. Funding for a claim on your own can be extremely expensive if you do not have general liability insurance. You would have to pay for a costly claim or lawsuit on your own if you do not have general liability insurance.

What business liability insurance does not cover

General liability insurance protects your company in many ways, but it does not insure everything. Different types of business insurance will be required for these types of liability claims.

Vehicle damage: It does not cover business-related motor accidents, staff injuries, and illnesses, damage to your company’s property, errors in professional services, claims that surpass your policy limit, or criminal conduct committed deliberately by you or your workers. If you own the automobile and use it for business, you will need a commercial auto insurance policy in the event of an accident. Rental and non-owned auto coverage can protect you if you hire a car for business or use your private vehicle for your workplace tasks.

Wrongdoings: General liability insurance will not cover any purposeful, illegal activities or wrongdoings committed by you or your workers.

Staff injury: Workers’ compensation insurance is required for employee injuries and illnesses due to their work at the business. If you have at minimum one worker, it is recommended you have workers’ compensation insurance. Workers’ compensation can be obtained from either a private insurance firm or a government-run organization.

Business property: Commercial property insurance covers damage to business property. This type of coverage covers leased or owned commercial offices or buildings, as well as business equipment.

Service errors: Professional liability insurance protects against errors in business services and actions. If a customer or client sues you for an error in your professional services, this insurance will cover your legal fees. This type of insurance is often known as Professional Indemnity insurance.

Claims are covered up to the liability limit of your insurance policy and no more. Purchasing an umbrella policy is an excellent strategy to expand your business liability insurance. This will safeguard you from any pricey lawsuits.

Talk to a licensed broker

General liability insurance is a simple investment with major implications. While general liability insurance premiums are quite inexpensive, this does not imply that you should spend more than is necessary for the finest coverage. With the assistance of a professional agent, you can ensure that you select the best insurance package for your company.

Reach out to us today, and we can help you understand how general liability insurance can protect your business and what does it cover. We are friendly and work in your interest and represent you in the insurance industry.