General Liability
Insurance to protect you against lawsuits
Unfortunately, for every business owner, the chances of getting sued have dramatically increased. General liability insurance can prevent a legal suit from turning into a financial disaster.
A general liability policy extends liability protection to a number of people involved in your business.
- If your business is a partnership or joint venture, this policy would cover all partners or members and their spouses—but only if they are sued because of something they did while acting in an official capacity for your business.
- If your business is a corporation or association, this policy would also cover all executive officers, directors, and stockholders, while acting in these official capacities.
- Your employees would also be protected while acting within their capacity as employees.
- Your policy would also extend liability coverage to any subsidiary for which you own more than 50% of the voting stock.
- Any person or organization, such as a vendor, with whom you have a written agreement to indemnify, would also be protected against liability claims for any bodily injury or property damage that results from distributing or selling your products.
- Any newly acquired organization would also be protected under your policy, for a limited time period.
- Your legal representatives would also be afforded liability coverage under this policy, for any liability arising from the maintenance or use of your property in their care.
- While acting under your direction and within the scope of their responsibilities for you, any volunteers for your business would also be extended liability coverage.
Typical expenses this policy may cover include:
- amount the insurer spends to investigate or defend the claim or suit brought against you;
- other costs incurred directly by the insurance company, such as attorney's fees, witness fees, and police report costs;
- any court costs, or other costs, assessed against you in a suit;
- reasonable expenses you incur at the insurance company's request to aid in your defense against a claim, such as your loss of income for a day spent in court;
- any judgment or settlement arising from a covered suit;
- any required interest on the judgment if the defense is unsuccessful;
- medical expenses for injured parties;
- premiums for any bonds required by a liability.