Welcome to the general liability insurance guide for new high school graduates. Here, you will learn everything you need to know about general liability insurance and how it can benefit your business.
First and foremost, general liability insurance is a policy that covers legal costs and damages that result from instances like slips & falls or defective products among other types of claims. While general liability may seem simple at first glance, this type of coverage actually holds great importance in protecting businesses against financial loss.
Thus we invite you to read into general liability more closely by learning what sub-categories fall under general liability as well as what situations would necessitate general liability coverage.
General Liability Insurance:
General Liability Insurance vs Product Liability Insurance
There are actually two general liability insurance sub-categories, general liability insurance, and product liability insurance. The main difference between general and product liability is the object of protection; general covers your company while product covers the products you sell.
Therefore general liability protects against bodily injury or property damage whereas product liability protects products you’ve made or sold from claims of being defective or dangerous due to faulty design, manufacture, packaging, instructions & warnings among other issues.
General Liability Insurance vs Employment Practices Liability Insurance
When it comes to employment practices liability insurance, this type of coverage provides protection against risks arising from employees like sexual harassment among the different types of injuries they may experience. Thus employers have a responsibility to protect themselves by keeping up with this particular kind of general liability coverage.
General Liability Insurance vs Professional Liability Insurance
The general basics of professional liability insurance are similar to general liability insurance; the main difference being that professional liability insures your company or products as a result of your profession or trade while general covers general issues regardless of background. Examples of professions for which you may require professional general & product liability include doctors, lawyers, and accountants among others.
General Liability Insurance Vs Commercial Auto Coverage
Commercial auto coverage is an umbrella policy under which exists other policies like comprehensive, collision, uninsured/under-insured motorist, and medical payments (if they’re required by state law).
Commercial auto is actually a general & product liability type of coverage that gives protection from general liability as a result of vehicles and drivers under your control. On the other hand, general auto insurance is a general liability that covers personal use vehicles.
General Liability Insurance vs Directors & Officers Liability Insurance
Directors & officers coverage focuses on protecting the members of your organization’s board from lawsuits, fines, or any other legal action brought by stockholders or companies’ representatives among others. Such situations may include fraud, negligence, theft among other types of general liability issues to which directors are vulnerable while acting on behalf of their company.
This type of general liability insures corporate officers against monetary damages brought about from malice toward directors and officers and all charges resulting from it; charges that arise due to allegations including poor management decisions-that is anything that falls short of general liability issues relating to products, general and professional activities.