Many catastrophes might severely hurt your bottom line. Your employee might, for instance, spill a can of white paint on some items. Or a client could suffer an injury after tripping over a rug in your establishment. Or you might face legal action for reputational harm resulting from something you or a worker said.
A small business’s general liability insurance Malaysia protects it from issues of this nature (and more). It is a crucial sort of coverage for the top small business insurance.
What Is General Liability Insurance?
A company’s general liability insurance shields it from customer and client claims of bodily harm and property damage. Claims of this nature could be brought about by the goods, services, or activities of your business. Without general liability insurance, you might have to pay out of your company’s profits and, in the worst situation, even declare bankruptcy.
“business liability insurance” and “commercial general liability insurance” refer to general liability insurance.
What Is Covered by General Liability Insurance?
A company’s general liability insurance shields it from a range of potential claims, including those for bodily harm, property damage, copyright infringement, reputational damage, and damages to advertising.
- Bodily injury: A common complaint is for bodily harm brought on by a company. A general liability insurance coverage would pay the injured person’s medical expenses if they were a visitor to your place of business and were hurt. In an office or retail setting customer’s fall could give rise to a bodily harm lawsuit.
- Property damage: Another typical liability claim is property damage. Your company might be held legally liable if someone’s property is harmed while visiting your establishment. If you are travelling to a client’s home or other property on business, property damage claims may include damage to that property.
- Claims of copyright infringement arising from the alleged unauthorised use of another person’s creative work in your business advertisement or other forms of marketing.
- If a news organisation is interviewing you and you say anything negative about another company that harms their business, that might damage your reputation.
- If your company disparages another customer, corporation, or business owner, it may cause advertising harm.
Learn more: https://hanhan.com.my/professional-indemnity-insurance/comprehensive-general-liability-insurance-cgl/
What Excludes General Liability Insurance?
Although general liability insurance for businesses doesn’t cover everything, it does cover a lot.
It excludes coverage for business-related auto accidents, worker illnesses and injuries, property damage, errors made by professionals, claims that exceed the policy limit, and unlawful conduct committed by you or your employees.
You’ll require various forms of business insurance for these liability claims, including:
- Employee sickness and injuries. To cover employee injuries, you need workers’ compensation insurance.
- Automobile mishaps If you own the car involved in the collision, commercial auto insurance coverage will financially safeguard you. If you drive a personal or a leased vehicle for business, you are protected by hired or non-owned auto insurance.
- Professional blunders If you commit errors while working, you are protected by an errors and omissions insurance (E&O) policy. E&O insurance is also referred to as professional liability insurance.
- Theft and damage to the assets of your company. Your company’s property or tools are not covered by liability insurance against theft or damage. To cover these kinds of issues, you need commercial property insurance.
Intentional acts, like tossing a computer out the window, are not covered by insurance. Additionally, general liability insurance won’t be of any assistance if you or your staff commit willful crimes or other wrongdoings.
Who Needs General Liability Insurance?
Following are some scenarios where having business liability insurance is advantageous:
- You welcome customers, clients, and vendors into your place of business.
- You market your firm or produce marketing materials.
- You may utilise social media for business or for personal usage.
- You conduct business at third-party locations.
- To be taken into consideration for employment contracts, you must have insurance.
- You employ contract workers.
- What kinds of companies find general liability insurance useful?
The following business categories frequently purchase general liability insurance:
- proprietors of small businesses
- landscaping businesses
- IT consultants
- agents for real estate
- Consultants
- marketing companies
- Cleaning services
- Independent contractors
Having General Liability Insurance Reduces Risks
Without general liability insurance, dealing with judgements, settlements, and legal costs may be exceedingly expensive and can bring a company to its knees. An hour with a lawyer may cost more than $100. According to The Hartford, court costs might approach $75,000 if the case goes to trial, and you might still have to shell out a few thousand dollars even if the patient is dismissed.
Your company runs the danger of going bankrupt if you don’t have general liability insurance. Additionally, you can lose clients if you don’t have general liability insurance since they won’t do business with you.
You’ll need proof of insurance to demonstrate your insurance coverage. An insurance policy’s official paperwork contains a complete list of coverage and limits.
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