commercial insuranceCommercial insurance protects companies, businesses, and individuals from certain liabilities and unexpected losses. Some policies like general liability are one of the most sought-after policies by businesses and independent contractors alike. It covers non-professional risks to help businesses manage their exposure. Here are some of the facts you should know before settling for general liability coverage.


How General Liability Insurance Protects Your Business


General liability insurance usually covers litigation fees from third-party lawsuits. Some of the liabilities it can cover include body injuries, property damage, and accidents during business operations. Most commercial insurance companies provide different levels of coverage to cover varying business needs.


Contractors And General Liability Commercial Insurance


Just as it is with small businesses, independent contractors can be sued for personal injuries and advertising malpractices. While clients may cover contractors under their commercial insurance, it is wise to consider purchasing your policy.


Getting a general liability policy will ensure your client does not increase premiums because they added a contractor to their coverage. You also do not have to worry about your coverage terminating when the contract ends.


Property Loss And Replacement Value


Commercial insurance for general liability may also cover losses due to property damage or theft. The value of the replacement may be determined by two criteria: actual cash value and commercial property coverage.


Occurrence Versus Claim-Based Policies


The policy of a claim-based coverage has a specific period it stipulates in the terms and conditions. If the event is reported after the commercial insurance has been canceled, the client receives no damages.


On the other hand, an occurrence-based policy can be fulfilled even after the client cancels their contract. As long as the claim is within the time frame of the policy, the commercial insurance is obliged to pay the client.


General Liability Versus Professional Liability Insurance


Typically, general liability covers non-professional aspects of the business, such as personal injury and property damage. Lawyers, accountants, and healthcare practitioners can use the policy to reduce the high cost of the client’s complaints.


Such requirements may pose liability issues regarding errors, misrepresentation of facts, or slander. The client can purchase professional liability insurance in addition to general liability. To avoid conflict between carriers, consider getting coverage from the same provider.


Get Insured Today


General liability commercial insurance is considered to be a comprehensive policy that includes personal injury and property damage. For more information on commercial and small business insurance, contact Cole Harrison today.

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