Common Commercial Insurance Gaps To Avoid

Common Commercial Insurance Gaps To Avoid
Anyone who owns and operates a business is exposed automatically to numerous liability and property damage risks. There are many forms of commercial insurance, including commercial auto, commercial property, worker’s comp, and professional liability insurance to guard against these risks.
General liability insurance is one of the most basic defense mechanisms that almost any business can greatly benefit from. It is not uncommon for general liability insurance to be foregone by business men and women looking to “pinch a penny or two,” who aren’t aware of general liability, or who don’t realize the gaps left in their commercial insurance package absent a general liability coverage.

What Is “General Liability Insurance?
The Commercial General Liability Policy provides the insurance protection needed to pay damages for bodily injury or property damages for which the insured is legally responsible. The policy provides coverage for liability arising from personal injury and advertising injury. Coverage for medical expense is also provided. The policy also covers accidents occurring on the premises or away from the premises. Coverage is provided for injury or damages arising out of goods or products made or sold by the named insured. The insured is the named insured and the employees of the named insured. However, several individuals and organizations, other than the named insured, may be covered, depending upon certain circumstances specified in the policy. In addition to the limits, the policy provides supplemental payments for attorney fees, court costs and other expenses associated with a claim or the defense of a liability suit.

The major parts of the General Liability policy are;

Premises/Operations
Coverage is provided for damages arising out of ownership or occupancy of the insured premises when not maintained in a reasonable manner. This also covers damages arising out of operations performed by the insured business.

Products/Completed Operations
Products coverage is provided for damages arising out of products manufactured, sold, handled or distributed by the insured. Completed Operations covers damages occurring after operations have been completed or abandoned, or after an item is installed or built and released for it’s intended purpose.

Medical Expense Limit
Medical payments coverage pays medical expenses resulting from bodily injury caused by an accident on premises owned or rented by the insured, or locations next to such property, or when caused by the insured’s operations. These payments are made without regard to the liability of the insured.

Fire Damage Limit
The fire damage limit provides coverage for fire damage caused by negligence on the part of the insured to premises rented to the named insured. If a fire occurs because of negligence of the insured and causes damage to property not rented to the insured, coverage would be provided under the occurrence limit.

Personal Injury
Personal Injury means injury other than bodily injury. Coverage is provided for injury resulting from offenses such as false arrest, malicious prosecution, detention or imprisonment, the wrongful entry into, wrongful eviction from and other acts of invasion, or rights of private occupancy of a room. Coverage for libel and slander is also provided in the policy.

Advertising Injury
This coverage pays for damages done in the course of oral or written advertisement that disparages, libels or slanders a person’s or organization’s goods, products or services. Coverage for these offenses is provided under advertising injury coverage only if they occur during the course of advertising the named insured’s own goods, products or services.

Who Should Get a General Liability Policy?
Any business that works with the public on their own or the customer’s premises. So for any business there is a risk when working with the public in virtually any business activity

How much will general liability coverage cost? That will depend on your business-type, your geographic location, the risk-level of your products/services, and on how many people you employ, but it will also depend on your insurer. For an affordable quote, contact Flagler County Insurance Agency today and ask about their Florida general liability insurance.