General liability is a type of insurance coverage that helps financially protect a business if someone files a lawsuit against it. This kind of policy oversees the cost of damages, medical bills, legal expenses, and settlements associated with claims.

Why is General Liability Coverage Important?

Lawsuits are expensive, and if a business doesn’t have adequate coverage, a claim could lead to financial ruin or bankruptcy.

However, with general liability, a business doesn’t have to fork out the costs to cover legal fees and medical fees caused by a client’s injury or property damage. This policy helps cover the cost of these claims up to the coverage limits.

What Does General Liability Cover?

General liability is designed to prevent businesses from experiencing financial hardships in the event of a lawsuit. This coverage protects them against claims associated with:

  • Bodily harm
  • Defamation
  • Property damage

For instance, if someone slips and falls at your client’s place of business, this coverage would help cover legal fees and medical costs. It would also provide financial assistance if your client’s business accidentally knocked down a patron’s fence or dinged their vehicle while on the job.

It’s important to note that this policy only covers third-party damages and harm. So it doesn’t include incidents like equipment theft, employee injuries, or property damage at your client’s own business.

Is General Liability Required by Law?

General liability isn’t usually a legal requirement, but there are some exceptions. For example, some lines of business, such as plumbing, electrical, or contractor work, make it mandatory. And certain organizations may require it before hiring a vendor.

While it’s not required by law, failing to have coverage could result in major financial implications related to a claim.

Falvey Insurance Group Coverage

At Falvey Insurance Group, we offer a Transportation & Logistics policy designed for logistic service providers and transport operators. This coverage includes a comprehensive package. Featuring general liability, along with errors and omissions, contingent auto, contingent cargo, and cargo legal liability. Contact us to find out more.