Business liability insurance is an essential coverage for any company, regardless of its size or industry. It helps protect a business from financial losses resulting from claims of negligence or other legal issues.
It's important to understand that business liability insurance is designed to protect a company from third-party claims. This means that if a customer, vendor, or other third party suffers a loss or injury as a result of the company's actions, the insurance will cover the costs of defending against the claim and any potential damages awarded. This can include things like medical expenses, lost wages, and even legal fees.
When a claim is made against a business, the insurance company will investigate the incident to determine if it is covered under the policy. If the claim is covered, the insurance company will pay for the costs of defending against the claim and any damages awarded. If the claim is not covered, the business will be responsible for paying for these costs out of pocket.
Commercial General Liability (CGL) insurance, protects your business against the economic loss and expense associated with claims filed against your business for bodily injury, property damage, injury to reputation caused by slander and libel, and also the harm caused by false or misleading advertising.
Bodily injury claims include claims for damage that results when someone falls while visiting your business. It can, depending on the language of the policy, also include coverage for claims of damage that occurs as a result of your business operations.