The liabilities, which include injuries, damage to properties, or any kind of activity due to which one’s business is at fault, are known as general liability. To escape from these types of liabilities, one must have G L insurance. This insurance covers all the liabilities related to the ones mentioned above.
Benefits of G L Insurance
- Knowingly or unknowingly, if any harm is caused to the third party, resulting in a lawsuit, this insurance comes into play.
- Insurance helps one save the reputation of the firm or the company.
- When a third party is injured due to any mishandling, this insurance covers the cost and lowers the burden.
- Above all, it helps one protect his livelihood.
Who must carry a G L insurance?
There are certain businesses for whom carrying the insurance is a must. They are-
- Professionals are dealing with technology.
- Consultants expertized in various fields.
- Law firms or people who are lawyers by profession.
- People are dealing with taxes and accounts.
Various damages are excluded from the insurance. They are-
- Damage to any vehicle, be it water, air or land.
- If there is an outbreak of war.
- Pollution caused due to the business.
- Compensation to the workers.
- Liability due to liquor.
Some examples of incidents wherein insurance play its role
- Let us suppose there is oil spilt on the floor of your office, and a customer enters. The customer is unaware of the spilt oil steps on it and falls, resulting from breaking his bone. Now the customer can ask for compensation, and you will be liable. This is where the role of insurance comes into play.
- Suppose you own a business which provides home service for repairing refrigerator and washing machine. You send your employee to a client’s home to repair a washing machine. Now due to some mistake machine explodes and is of no use now. Here the general liability insurance helps compensate.
