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General Liability Insurance

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What is General Liability Insurance?

General Liability

General Liability Insurance, also known as Public Liability Insurance, is a type of coverage that protects your business from financial losses due to third-party claims of injury or property damage.

Why do you need general liability insurance?

Protection from Legal Expenses

When someone decides to sue your business, the legal costs can skyrocket very quickly. General liability insurance helps cover these costs, ensuring that a lawsuit doesn’t cripple your financial standing.

Enhances Business Reputation

Having this insurance showcases your business as responsible and reliable. Clients and customers are more likely to trust a business that has taken steps to protect them and itself from potential accidents or damages.

Coverage for Injury and Property Damage

Accidents can happen at any time, and when they do, you’ll want to be prepared. General liability insurance covers medical expenses if someone gets hurt on your business premises and repairs or replacements if their property gets damaged.

What is covered under General Liability Insurance?

  • Bodily Injury: If a client slips and falls in your office, this insurance will cover their medical expenses.
  • Property Damage: If you or your employees accidentally damage a client’s property, this insurance helps pay for repairs or replacements.
  • Advertising Injury: If your advertising content inadvertently harms another business’s reputation, this insurance can cover the costs associated with resolving such claims.
  • Legal Defense and Judgments: Should your business face a lawsuit, general liability insurance will help cover the associated legal costs and any required payments to the other party if you’re found liable.
  • Product Liability: If the products you sell or manufacture cause harm or are defective, this insurance can protect you from related claims.

How do you get General Liabiltiy Insurance?

Acquiring general liability insurance involves a few key steps:

  1. Assess Your Risks: Look at your business operations to identify potential risks that could lead to third-party injuries or property damage.
  2. Find a Reputable Broker: Work with a reputable insurance broker like Gerrards to find the best coverage options tailored to your business needs.
  3. Determine Coverage Limits: Decide on the amount of coverage you need. A broker can help you understand the risks and recommend appropriate limits.
  4. Review Policy Terms: Make sure you understand what is and isn’t covered under your policy. Pay attention to any exclusions or limitations.
  5. Regularly Update Your Coverage: As your business grows or changes, your insurance needs may change as well. Regularly review and update your coverage to ensure it remains adequate.

Disadvantages/Advantages or Pros/Cons of General Liability

  • Financial Protection: Covers the cost of legal defense and settlements, protecting your business’s financial stability.
  • Peace of Mind: Knowing you have protection in place allows you to focus on growing your business without constant worry about potential risks.
  • Attracts Customers: Customers are more likely to choose a business that has insurance, as it portrays professionalism and responsibility.
  • Cost: While it is an essential expense, the cost of general liability insurance can be significant, especially for small businesses.
  • Policy Limits: There may be situations where the cost of a claim exceeds your policy limits, leaving your business to cover the difference.

Common Misunderstandings

Some common misunderstandings about general liability insurance include:

  • It Covers Employee Injuries: General liability insurance does not cover injuries to your employees; this is covered by ACC or employers liability insurance.
  • It Covers Professional Mistakes: Mistakes made in your professional services are not covered by general liability insurance but are covered by professional indemnity insurance.
  • It’s Too Expensive for Small Businesses: While the cost can be significant, the financial protection it offers is invaluable, especially for small businesses that may not have the resources to cover a large lawsuit.

How Can Gerrards Help With General Liability?

As a New Zealand-based insurance broker specializing in business insurance, Gerrards is well-positioned to help you navigate the complexities of general liability insurance. We can:

  • Assess Your Risks: Our experienced team can help identify potential risks specific to your business operations.
  • Tailor a Policy to Your Needs: We work with a variety of insurers to find the best coverage options tailored to your business.
  • Provide Ongoing Support: Our commitment to our clients doesn’t end once you’ve purchased a policy. We offer ongoing support and assistance in updating your coverage as your business grows and changes.

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