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Sutton Insurance Tips: Understanding Your General Liability Insurance

by Lisa Hirbour / September 30, 2016

The purpose of general liability insurance is to help protect businesses against lawsuits and claims for property damage, bodily damage, advertising injury, and personal injury. General liability coverage for businesses can also help protect in the event an individual is injured on the premises of the company. While general liability coverage won't make you immune to lawsuits, it can help protect your business against financial ruin. Here is some information that will help you better understand your general liability coverage for your Sutton business.General Liability Insurance Sutton MA

What is General Liability Insurance to a Sutton Company?

No matter how careful you are, your business may be subjected to a significant legal settlement or claim at some point in the future. While many don't realize this, a single claim or settlement could cause a business to go bankrupt. Therefore, it is important that all business owners take precautions to protect the finances and assets of their business. In fact, no business should even go a day without general liability insurance. Without general liability coverage, a business will be vulnerable to claims of negligence, accidents, injuries, and charges of discrimination.

Most insurance companies structure their general liability coverage to help cover both legal costs and the financial settlements. If your business is a LLC, owners don't have to worry about losing their personal assets due to liabilities that may arise from a claim or lawsuit related to business. However, all business assets will still be vulnerable, which is why general liability coverage is an essential component of a business insurance package.

Some events that a general liability policy may help to cover include: 

  • Injuries and accidents involving individuals or property that occur on the premises of a business or arise due to the operations of the business.

  • Medical payments to pay for the minor injuries suffered by individuals on the company's premises. 

  • Liability for damage inflicted to the property of others in the course of operation. 

  • Accusations of libel or slander related to company advertising. 

  • Fire damage and theft.

Before you get a general liability policy, it is vital that you keep in mind that general liability will not help cover lawsuits or damages related to professional liability, workers compensation, or errors and omissions. If you want coverage for these areas, you will need a separate policy. 

How to Understand Your General Liability Insurance Policy in Sutton

To ensure you take full advantage of your general liability coverage in Sutton, you must take the time to fully understand your policy. The main components of a general liability policy that you want to pay close attention to are the policy declarations, coverages, exclusions, limits, and insurance conditions.

Policy Declarations - Most of the time, the policy declarations can be found on the first page of a policy package. The policy declarations will state who is insured and the duration of the policy.

Policy Coverages - The policy coverages section will identify what is covered and for what perils.

Policy Exclusions - The policy exclusions will describe the limits of coverage and instances in which coverage may be eliminated.

Limits and Special Limits - This section will discuss how much the insurer will pay for certain types of liability and losses. 

Insurance Conditions - The insurance conditions discuss the responsibilities of the insurer and you, the policyholder.

If you want to make the most of your general liability insurance, it is important that you know your policy like the backyard of your Sutton home. For more information about understanding this coverage, don't hesitate to contact a friendly local agent!

 

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