In the present day society, a small accident can result in protracted and potentially money- sapping lawsuits. General liability insurance, therefore, becomes a necessity for most companies. General liability insurance protects a company's assets when it is facing a lawsuit for damages it could or may not have inflicted upon a person though injury or property damage.
General liability insurance can be bought independently or as part of a BOP (COMPANIES Policy). A Business Owners Policy packs liability and property insurance into a single policy. The liability insurance coverage limits, however, are usually quite low. Businesses needing a larger coverage usually buy liability insurance being an independent policy.
In a general liability insurance policy, legal costs of a small business in a covered liability lawsuit must be paid by the insurer. Covered liability claims include property damage, bodily injury, personal injury and damages from false advertising, also known as advertising injury. Insurance companies also cover general and compensatory damages. However, liability plans usually do not cover punitive damages, as they are deemed punishment for deliberate actions.
General liability insurance policies always declare a maximum amount that insurers need to give during the policy period. Beneath the policy, gleam maximum amount that the insurer has to pay per occurrence. For example, if a company includes a $1.5 million occurrence cap and loses case of $2 million; the insurance company is obligated to pay just the $1.5 million; the rest needs to be paid by the business enterprise company.
As a cover against these kind of circumstances, companies buy umbrella liability insurance, which makes the picture where general liability coverage stops. It covers payments that go beyond the company's policy's limits and provides extra protection for liabilities not covered in the typical insurance policy.
Generally, there is Liability Insurance Brokers Norwich for the policyholders to report to the insurance company when an accident that can lead to a liability claim has taken place. The business enterprise owner will then need to help in the investigations, forward legal notices, etc.