Scenarios and Examples – Why You Need General Liability Insurance
You have customers that come to your place of business
A customer or client comes to your property to buy your service or product. When the client enters, they slip and fall. They sue for negligence. General liability insurance (depending on your limit) may allow you to pay a portion of the medical costs under the Medical Expense coverage. Then later, if a suit is laid, defend and settle that suit.
You create and publish an advertisement, which you tell others of why your product is so much better than your top competitor’s product. That your competitor puts something that is unsafe in their product. Your competitor sues, stating that they were humiliated and lost customers by your actions.
You provide your product/service at your clients/customers property
You run your business within your home office, but service clients at their property. At your client’s property, you accidentally knock over a decorative vase on a table in the hallway on the way by. They demand you replace the damaged items. Property Damage within Commercial General Liability Insurance covers the expenses it takes to replace the property.
You Rent A Space
You are in the 3rd year your of your 5 year office space. You decide to clean the carpets yourself rather, than hiring a carpet cleaning company. The carpet cleaning machine is left plugged in overnight and starts a fire damaging your office and the neighbor next door. In this scenario, Tenant Legal Liability’s coverage will help cover the damage to your leased space. Commercial General Liability limit will look to cover the Property Damage to the neighbor.