General Liability

General Liability insurance is a type of commercial insurance that is usually applicable to commercial business enterprises, wherein both public and private companies opt for liability insurance to protect their assets from getting sued by the affected party. The affected party might have been subjected to bodily injuries or their property might have been damaged and this damage might have been caused by one of the assets of the company. Thus it is very important from the company’s perspective to have general liability insurance so that they are sufficiently covered in the case of filing of damage claims.

Different ways to get commercial general liability

Companies can get coverage for general liability in two forms.

1. In the form stand-alone general commercial liability insurance

2. As a part of the business owner’s policy

The basic difference between the two options lies in the coverage limits available. If the company has opted for a separate general liability insurance policy, their coverage limits are much higher than the limits that are available for a policy that is part of the Business owner policy.

Factors that determine the extent of coverage to be taken

Any business entity, small or big, needs to have liability insurance. The only thing that needs to be decided by the business owners is the quantum of coverage amount. Companies should consider the following two factors to take a decision on the quantum of coverage

1. Risk associated with the business

If the company is involved in manufacturing components using heavy machinery, then the probability or the risk of workers getting injured is more and hence the company should opt for a higher quantum of coverage to face the lawsuits filed by the employees. But if the company is involved in the manufacturing of garments, then the complexity of the machineries involved are very low and naturally the number of occurrences of the employees getting injured will also be low. In such a scenario, the company could opt for a lower coverage that is provided by the liability policy that comes as part of the Business owner policy.

2. Location of the company

Though this factor is not that important as compared to the business risk, this should also be considered. There are some regions in the country where the affected parties get huge amounts as compensation when the judicial verdict comes in their favor. If the company has operations in such regions, it will be more beneficial for the company to opt for higher coverage.

Getting the right general liability insurance

If you are a business owner shopping for appropriate liability insurance, you could definitely approach our Alpine Insurance Agency and get the right expert advice. We have been providing insurance advisory services to both companies and individuals and have been guide our customers to choose the right policy. We educate our customers on the different factors that need to be considered and help them decide on the quantum of general liability insurance coverage. We have experienced and certified insurance professionals, who have obtained the certification from insurance industry regulatory body.