General Liability Insurance protects a business, it’s owner(s) and employees against their negligence to invited guests who come on premises, for services they obtain or for the products they purchase from the business. The liability insurance protects the tortfeesor who commits the acts that can be considered negligent – failing the reasonable, prudent man test. This test is “what would a reasonable man do under similar circumstances . ”
Casualty Insurance coverage provides a line of defense against law suits alleging bodily injury, mental pain and anguish, and property damage. Commercial General Liability Coverages allows the business to continue operations while it faces real or fraudulent claims(charges) for negligence or wrongdoing.
General liability insurance has an occurrence limit which could range from $300,000 to $2,000,000 per occurrence or higher. The policy will not pay out more than the occurrence for a single act. There is an aggregate limit that can range from $300,000 to $6,000,000. The aggregate limit is the most that will be paid out under the policy regardless of the number of occurrences during the policy period. If your business does not experience losses often, but the losses could have a great deal of severity associated with them, you need to purchase the largest limits you can afford for your business.
The liability insurance purchased for your business will legally defend you, your business, and your employees against claims whether real or fraudulent. The casualty insurance coverage is designed to pay for acts of negligence, keeping the business running and offering the business owner a good night’s sleep from the stress of general liability insurance claims.
Remember to purchase the largest limits of protection that you can afford, run a safe business with a good eye toward the safety of others, and your general liability insurance will be there to provide protection when you need it most from acts of negligence.