General Liability Insurance Page 1

Guard Your Business Against Bankruptcy

General Liability Insurance Page 2

If you own a business it is one of your most basic responsibility to have it insured

against third party claims against your business. The amount of required coverage

differs between states and countries but the most basic requirement always

requires general liability insurance.

What is general liability insurance and how can it help your business?

General liability insurance is a type of insurance that protects the policy holder

business from financial loses that result as payment for damages inflicted upon

another person or his or her properties.

If there is a claim that your business

establishment’s services or products

caused damage to your customer’s

property or health for example, your

general liability insurance will protect

your own business’ assets by paying

you’re the claimant for all the payment required by the damages.

A claim must be filed by the business owner stating what happened and claiming

that the incident is covered by the insurance policy. The insurance company will

conduct their own investigation about the claim and if the claim is found to be

true, the third party will be paid according to the calculations by assessors on the

value lost because of the damage caused by the policy holder.

General Liability Insurance Page 3

There are a lot of situations when a liability insurance for a business

establishment can be very useful. Injuries due to a company’s services or injuries

because of the physical plant of a business establishment is a very good example

of a claim from a third party. If one customer burned his or her tongue in because

of the hot French fries your restaurant served, the claimant could claim that there

were no warning signs that the fries were hot and it was negligent on your part

not to place any warning signs.

In this case, if the court indeed finds your establishment guilty of unknowingly

causing the damage towards the claimant, you will be required to pay for the

damages that were incurred. This can be in the form of medical bills, trauma and

all the other form of damages you can think of. It

is possible that a large chunk of your business’

bankroll may be taken because of the lawsuit if

you are not covered by general liability

insurance.

Your company will be able to continue with its service and production because

your funds will not be bothered by lawsuit payments if you have coverage of a

general liability insurance plan. You can ask for a General Liability Insurance

Quote from the internet or your own insurance agent if you have one.