COMPONENTS OF GENERAL LIABILITY INSURANCE
General Liability Insurance covers defending your business against civil lawsuits and legal liabilities for damages caused to others. Some form of liability coverage is essential in almost any business. Below is a summary of the coverages that are generally included in this policy:
Personal Injury: Has its own limit of coverage per occurrence for losses caused by libel, slander, false arrest, wrongful eviction, invasion of privacy, malicious prosecution, and other similar coverages.
- Advertising Liability: Provides coverage for copyright infringement and misappropriation of advertising ideas. (Not usually available if you are in the advertising or related field.)
- Medical Payments: Usually just a small amount of coverage (perhaps $1,000) for minor injuries suffered by the general public while on your premises. This coverage does not have a deductible.
- Fire Legal Liability: Usually $50,000 of property coverage for fire, smoke, and explosion for the building you rent or lease if you are legally liable for the damage. (If you have an agreement with your landlord where each party assumes responsibility for their own property, you may not need this coverage.)