by Marie King
According to GeneralLiabilityInsurance.org :
“The general liability insurance definition refers to a plan that insures your business against lawsuits due to bodily injury, property loss, personal injury, or advertising injury. If a complaint goes to court, your insurance benefits would pay for your legal fees and for damages awarded to the plaintiff. General liability insurance secures your business’s financial assets when you are involved in litigation due to an accident or mishap.”
Bodily injury coverage in general liability insurance protects you from liability if someone is injured on your property or at your work site. For example, if a roofer on your construction crew drops a hammer that lands on your client’s head, your general liability insurance would cover the damages and medical costs. On your private property, if one of your guests trips over an object in your yard, your general liability insurance would pick up the legal and medical costs.
Under general liability insurance, the damage to property either private or at a work site is covered. For example, if a package of materials falls and smashes outdoor furniture, belonging to your client at your work site; your general liability will cover the cost of replacing that furniture. Likewise, if a house guest’s car gets damaged in your driveway, your general liability will pay for the cost of repairs.
Personal injury, as part of general liability insurance, refers to when you injure the reputation not the body of an individual. If you slander your competition, this is considered personal injury, and the court costs would be covered. For example, you plan a hard driven marketing campaign. In your marketing literature, you infer that one of your competitors does a less than professional job. That competitor can sue you for liable. Whether your inferences about your competitor are true or not, your general liability insurance will pick up the tab for the legal expenses.
Advertising injury refers to when you infringe upon the copyright of a competitor, and under your general liability insurance, the court costs would be covered. An example of advertising injury might come about if you became enamored by a piece of your competitor’s advertising. In the competitor’s advertising, you like the way he describes the benefits his company can bring to the client. You use those benefit descriptions to describe your company. Once you have used your competitor’s words to describe your company, you have infringed on your competitor’s copyright.
We live in a very litigious environment. Whether you are found guilty or innocent, the cost of mounting a defense can bankrupt your company. General liability insurance is a crucial piece in your risk management strategy. This type of insurance not only protects you from the damaging costs of lawsuits, but it also gives you peace of mind.