General Liability Insurance
General Liability Insurance
Liability insurance is a part of the general insurance system of risk financing to protect the purchaser (the "insured") from the risks of liabilities imposed by lawsuits and similar claims. It protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy. Originally, individuals or companies that faced a common peril, formed a group and created a self-help fund out of which to pay compensation should any member incur loss (in other words, a mutual insurance arrangement). The modern system relies on dedicated carriers, usually for-profit, to offer protection against specified perils in consideration of a premium. Liability insurance is designed to offer specific protection against third party claims, i.e., payment is not typically made to the insured, but rather to someone suffering loss who is not a party to the insurance contract. In general, damage caused intentionally as well as contractual liability are not covered under liability insurance policies. When a claim is made, the insurance carrier has the duty (and right) to defend the insured. The legal costs of a defense normally do not affect policy limits unless the policy expressly states otherwise; this default rule is useful because defense costs tend to soar when cases go to trial.
Why Do I Need Business Liability Insurance?
Business Liability Insurance Keeps You In Business.
Every business benefits from adequate Commercial General Liability coverage. CGL insurance protects you if a customer is injured at your place of business. It would also cover damage or injuries caused by your employees at a client's site.
Commercial General Liability protects businesses against these types of claims. Even if your company is negligent or liable for damage, injury or loss to another's property, reputation or health, your business can keep its assets if it is adequately insured.
Who Needs Commercial General Liability Insurance?
Commercial General Liability Only Protects Against Some Business Liabilities.
Even as a BOP (Business Owner's Package), where CGL insurance is combined with Property insurance at very reasonable rates, General Liability insurance does not protect your business against every liability. If you or your employees make professional judgments and recommendations in the course of your business, ask your agent or broker about a Professional Liability policy in addition to a CGL policy.
Oklahoma law governs what type of general commercial liability insurance is required at small businesses. These laws exist to protect the rights of employees and clients in the event of a workplace accident. Whether you run your business in Oklahoma City, Norman, Edmond, Piedmont, Yukon or elsewhere, you are subject to these laws. Failure to comply can result in large fees and even the loss of your business license. Make sure to become familiar with local regulations before buying your policy, as you will need to purchase a plan that fits within the limits established by Oklahoma law.
To learn more about General Liability Insurance contact us at 405-373-2977 or visit Oklahoma City Business & Commercial Insurance.
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