What is General Liability Insurance?
General liability insurance (GL) is a form of insurance purchased to protect an insured (usually a business entity) from an array of detrimental claims. GL policies cover losses sustained from a personal injury, bodily injury, property damage, and various losses caused by business operations.
Who needs General Liability Insurance?
Imagine investing years of hard work and countless hours building a successful business, only to have it taken from you because someone slipped and fell on your premises. Businesses without GL policies are exposed to a greater number of potentially detrimental risks.
Experienced business owners invest in general liability insurance because it transfers risk and helps to ensure the longevity of the venture. Every business owner who values their business should have a general liability policy.
Why should businesses have General Liability Insurance?
When you own a business or piece of real estate anyone can sue you for any reason. If a person takes legal action against you, your general liability policy should protect you. General liability policies cover you for losses listed under the coverages, and also cover the legal fees associated with defending a claim. General liability insurance should cover legal fees regardless of fault! This means whether you are found innocent or guilty, the policy will pay to defend you in court.
When should I purchase General Liability insurance?
You should purchase general liability insurance when you plan on opening a new business, or when purchasing a new piece of real estate. Any claims filed against you outside of the policy period will not be covered. It is not recommended that you operate a business or own a piece of property without having general liability insurance.
For business owners, the best time to purchase/issue general liability insurance is anytime before you begin business operations. Businesses under construction should carry general liability insurance even before they begin business operations. Real estate owners should have a general liability policy issued on the date of their closing.
When does General Liability Insurance “Kick-in”?
General liability insurance "kicks in" when you have a claim filed against you. General liability covers the cost of legal fees and will also cover the damages of a loss if the loss is covered under the policy. All general liability policies differ, but for the most part, they cover personal injury, bodily injury, property damage, and certain losses arising from business operations.
In order to receive payment from a GL policy, the claim must first be settled in court. Once the claim is settled, the carrier must make payment within a "reasonable" amount of time. It is tough to determine how fast a carrier will make payment, however, they usually pay out relatively quickly.
Where can you purchase General Liability insurance?
If you are interested in purchasing general liability insurance or any type of insurance for your business, you should seriously consider contacting a licensed property and casualty (P&C) broker. Working with a licensed P&C broker is crucial for obtaining quality and affordable coverage. A good broker compiles the different risk exposures of your business, evaluates the appropriate limits of coverage and issues a quote with the most affordable premium.
THE SKYLINE DIFFERENCE
Other brokerages take a cookie cutter approach to insurance and outfit their customers with generic coverage. Skyline is different. We believe insurance should be built on innovation and experience. We appreciate the fact that every engagement is unique and understand proper coverage requires a deep understanding of the underlying business and individual.
"The opportunity to safeguard your concerns is a privilege we never take for granted."