Why All Organizations Need Business General Liability Insurance

Business General Liability insurance is the most common insurance available. Almost every business has this type of insurance and many countries have legislated that a business needs adequate directors and officers liability insurance before the company can begin trading.

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General liability insurance protects businesses against lawsuits that pertain to personal injury, property damage, and advertising claims. General liability insurance is commonly abbreviated as (CGL) or Commercial General Liability. Depending on the size of the organization and number of employees, this may well be the only liability insurance the company needs.

There are large variations in the cost of the various business liability insurance policies. For example, a business that produces explosives will need a substantial insurance cover to protect the company from civil lawsuits which could arise from accidents. While a pillow factory, which is involved in a less risky operation, will require less cover and there have a lower premium. The location of the company also has a bearing on the cost: large cities with expensive attorneys are usually more expensive.

With general liability insurance, the insurance provider or it's nominated underwriter pays all the legal costs that a business accrues during a lawsuit or liability claim. Covered liability is usually bodily injury, personal injury, property damage, and advertising injury such as false advertising. The insurance company also covers compensation and general damages.

Business general liability insurance policies always have a maximum payment amount in any given period. This might not be sufficient to cover your contingent liability, but will certainly fund a portion of it.

Many companies will need more coverage than just your standard business general liability insurance. For example, if your company operates motorized vehicles it will also need fleet insurance; if the company serves alcohol or deal with hazardous materials, it will need other specialized coverage.

A Business Owner's Policy or BOP bundles property insurance with liability insurance. This is a good option for those in need of business general liability insurance. It helps small and medium sized companies with a low risk of potential injury to save a great deal of money. Many times, by using a BOP, one can also add automobile insurance at a reduced cost.

The cost of all business general liability insurance policies is based on the type of organization, its services, the number of staff employed, and the location. To get an idea of your company's requirement consider approaching a similar organization to enquire about their policy.