Business General Liability Insurance
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The cost of business general liability insurance premiums will need to be at the top of the list in every company's priorities for its yearly budget expenses. Americans apparently have some special nose for smelling out insurance liability money just ripe for the taking, so at the least little hint of negligence or error the lawyer will be called and the litigation dance will begin. Literally hundreds of millions of dollars are paid out each year in settlements that never reach the trial stage, making liability coverage a necessity for the business owner and an ever increasing burden on the various carriers. For many companies, business general liability insurance which is a blanket policy covering a number of negative circumstances is enough to allow the owners to breathe easier. For some others, there will need to be a number of addendums to that general coverage.
From policy to policy and company to company, effective business general liability insurance will cover four main areas of exposure: bodily injury, property damage, personal injury and advertising injury. Bodily injury coverage will pay for any sickness, injury, or disease that might occur on business property as the result of some issue arising on premises. Personal injury coverage is for instances in which a person is hurt by slander, false arrest, violation of privacy, illegal entry or other action of a similar nature. Advertising injury coverage handles not only slander and libel issues, but ones of copyright infringement. Property damage coverage will meet the losses of property that occur on certain business properties, but with a caveat.
The problem with business general liability insurance is basically the same as a one size fits all jumpsuit. It's an absolute guarantee that the "one size fits all" claim is false. If it was a "one size fits many" claim, okay. But it's the others that are the problem and so some very distinct liability issues are not covered under an umbrella policy. And it is in these non covered circumstances that many companies and many professions must seek additional indemnity protection. Injury and suffering can happen to any of us at almost any time, but God is very interested when His children are hurting because of any circumstance. "Are not five sparrows sold for two farthings (less than a cent) and not one of them is forgotten before God? But even the hairs of your head are numbered...fear not therefore: ye are of more value than many sparrows." (Luke 12: 6, 7)
The physician will buy business general liability insurance for the slip and fall occurrences that can happen in his waiting rooms. That same policy will cover the time one of his office workers gets angry with a patient and calls her a neurotic hypochondriac in front of thirty people in the waiting room. But he will need malpractice insurance and perhaps an additional error and omission (E & O) policy when he overlooks a tumor under the armpit of a patient during a routine exam that delays cancer treatment by six months. The attorney will need business general liability insurance for the slip and fall occurrences at his office also, but he additionally need legal malpractice insurance when a client accuses him of not representing him fully during a criminal trial. He will also need E & O coverage for the wrong date put on a legal paper by an office worker which cost a client $100,000 in profits.
That auto dealership down the road needs the blanket protection also. The owner may need that coverage when customers spill hot coffee on them in the TV room waiting on a repair to be completed. But he is going to need special garage owner's insurance for the time he is sued over faulty products his dealership sold to a customer. He'll need that same insurance for work done on the cars, but he'll need garage keepers insurance in case an overnight fire destroys customers' autos inside his dealership. Blanket business general liability insurance coverage for this enterprise owner has lots of holes in it.
When this blanket protection gets very expensive for the small business owner, he may have to bring in a consultant to advise on ways to minimize hazards and dangers so that the indemnity company will recognize the efforts and lower the risk cost. Mandatory safety training for all employees can also aid in rate reductions and if there is danger of slander or libel, workshops on correct communication can also provide lower rates as a result of employees attending. An owner may have to change companies on a regular basis in order to get the best rates, but there is always a danger that the lowest rates are not the best coverage for the money. Side by side comparison of exactly the same kinds of coverage and deductibles is the only way to make smart decisions. There is the reality that in tougher economic times, insurance carriers become more and more selective of which customers will be offered coverage.
The small business person has no choice at all in whether to have business general liability insurance. One incident can completely wipe out a company without enough indemnity protection. And because the small business owner's family well-being is often wrapped up in the health of the enterprise, this priority seems like a no brainer. If there are any doubts about one's coverage, an hour with an attorney can help clear up those concerns. In fact, adding your insurance agent to that conversation with the lawyer would be very helpful.
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