General liability insurance will help to keep the doors of the business open and operating in the event of lawsuit and judgment against your business. Allow your licensed insurance professional to be your guide as you work toward determining the appropriate amount of insurance and type of coverage needed for your business.
General liability, property insurance, and workers compensation coverage are all necessary to any business, whether it is just starting up or already operational.
In this day and age, where businesses are sued on regular basis, even a small mishap could easily result in a lawsuit.
General liability insurance protects the business and its assets in a scenario wherein it is sued for claims of bodily injury or damages and will generally cover the costs of defending and litigating a claim brought against the company.
Such coverage will pay any compensatory awards or actual damages which the business is obligated to pay up to the coverage limits; however, general liability insurance will not cover punitive damages, due to the fact that those damages are considered a result of intent.
Amounts of coverage amount necessary are determined by a variety of factors, including the type of business, the general area where the business is located, and types of equipment included.
Such coverage will usually specify a maximum paid per time period as well as a maximum per occurrence.
For instance, if a business has a policy which offers $1 million per occurrence, and the business received a $1.25 million judgment against it, the insurance would cover $1 million of the judgment, leaving the business would be responsible for the $250,000 which remains.
As always, you will need to work with your licensed insurance professional in order to determine how much and what types of coverage you need.