Growing a successful business takes years of hard work and dedication. Also, your business’ reputation is based on the trust of your stakeholders, including customers and employees. But this reputation can be affected due to financial liability arising out of claims made by unhappy employees or customers.
Servicing these claims can take a toll on your cash flows and hamper routine business activities. In this situation, having commercial general liability insurance to protect your business from such unexpected pitfalls can be a boon.
What is commercial general liability insurance?
A commercial insurance
policy that protects your business from legal accountabilities involving compensation to stakeholders is termed as commercial general liability insurance. All organizations require this insurance to safeguard their business and financial interests. Any claims made against public liability as well as product liability are covered under a commercial general liability insurance policy.
Say, for example, a client visits your manufacturing facility and while taking a look around the premises, he trips over a few wires, which results in injury. The client can file a claim of negligence against your business and stand to receive significant compensation. Commercial general liability insurance can help avert such financial losses for your organisation.
What types of liabilities are covered by commercial general liability insurance?
Commercial general liability insurance covers a varied list of liabilities:
Product liability can mean the liability that arises due to sub-par products or services offered by an organisation.
Public liability, on the other hand, insures an organisaton against third-party legal procedures, including the damages caused or losses occurred within the business premises.
: A product recall is an unordinary situation wherein the manufactured products need to be recalled due to technical reasons. It is commonly observed in the automobile sector. A recall can have an impact on your finances, but at the same time, it is necessary to call back those products. You surely don’t want to supply damaged or defective units to your customers and hamper your brand image. A business liability cover will ensure you don’t have to worry about the financial strain arising out of a product recall and continue to focus on offering quality products.
The workforce is a crucial part of any business. Availing commercial general liability insurance can help a business comply with statutory requirements while also providing financial support to employees’ families in case of occupational hazards or injuries.
Apart from the liabilities mentioned above, claims made by participants of clinical trials in food, cosmetic, and pharmaceutical companies are also covered under commercial general liability insurance.
Availing liability insurance
for your business ensures comprehensive protection to the organization against financial setbacks.
Here are a few examples of when a business liability insurance will safeguard the entity:
- From accidents occurring in the organisation’s premises.
- From damages caused due to defective/sub-par products/services.
- From medical expenses that need to be borne in case of injury to a third party.
- Provide compensation to employees in case of injury while performing routine activities.
So be wise and avail commercial general liability insurance to safeguard your organisation from untoward financial liability in the course of your routine business.