If you have a business in Upstate New York, you most likely have a general liability insurance policy. This policy protects insureds from claims arising due to lawsuits filed by third parties against your business. It can provide broad protection, but many business owners may not know what constitutes a claim. Below, we explore the typical claims covered under a general liability policy. A general liability insurance policy will generally cover the following related to your business:
- Third party property damage claims.
- Third-party bodily injury claims.
- Advertising injury, reputation damage, and copyright infringement claims.
- Defense costs (legal fees) related to settling covered claims.
- Administrative costs related to covered claims.
- Court costs related to covered claims.
- Settlements and judgments for covered claims.
Not everything that happens to your business is covered under your general liability policy. A general liability insurance policy does not cover the following related to your business:
- First party property damage: a property insurance policy responds to this type of damage.
- Work-related employee bodily injury: a worker’s compensation policy covers this type of claim.
- Auto accident losses from employees while driving for work purposes: an auto insurance policy responds to this type of loss.
- Purposefully illegal or malicious acts.
Most general liability insurance carriers work closely with their insureds to settle lawsuits. Insurers understand that they can minimize their losses by helping their insureds with risk management by improving the business operations and properties that can reduce hazards. At the same time, this allows the business to spend less time and money on managing claims and more time on their business.
Unfortunately, many businesses in Upstate New York understand what it feels like to experience a claim. By understanding the basics coverages afforded under a general liability policy, business owners can prepare and collaborate with their insurance company to minimize the impact of a claim.