Essential Ways to Expand Your General Liability Insurance

Essential Ways to Expand Your General Liability Insurance

Every business owner needs a quality commercial general liability (CGL) insurance policy to address their risk management needs. However, general liability insurance, while extensive, is still general. Therefore, it might not provide the high degree of specialized coverage that come in we're open you might need for all industry risks. Often, you will need to buy expanded liability benefits to enhance the coverage already provided by your general liability coverage. What are some of these policy options?

By understanding where your general liability insurance will or will not cover you, you’ll know situations where you might need to buy additional coverage. Our agents are happy to work with you to implement the appropriate policy expansions that will offer you coverage for unique or industry-specific liabilities.

What is general liability insurance?

Most business owners buy general liability insurance to help them protect themselves against the ramifications that might arise when their mistakes harm others. The reason you need to buy this coverage is because when you make mistakes or neglect to do your duty properly, you might harm others. Because the harm this person sustained was your fault, you might have to repay them. General liability insurance will help you do so.

Your CGL policy can pay for settlements and legal fees resulting from several types of harm that you might cause to others, usually including:

Property damage
Bodily injuries
Advertising injuries
Personal injuries (libel, slander)

Copyright infringement
Product liabilities
Completed operations liabilities

The policy will therefore enable you to compensate someone affected by your mistakes.

For instance, if a customer slips in a puddle and falls in your business, their injuries might be your responsibility to cover. Liability insurance might provide you with assistance paying their medical bills and provide legal assistance to both parties in case a lawsuit arises.

What policy extensions will I need?

Once you have your general liability insurance plan in place, you shouldn’t stop your coverage at that. CGL policies will contain limits on when they will cover your losses. As a result, you might not have full coverage against every liability present in your operation.

To get extra coverage, you will likely need expanded liability protection. Some of the most essential include:

Cyber Liability Coverage

Data insecurity theft could not only hamper your operation, but also have financial ramifications. Should an instance of cyber theft, hacks, ransomware or other security event occur, this policy can help you cover the ramifications on both the business and its customers. It can help you pay the costs of securing your networks, notifying appropriate regulatory authorities and more, such as protecting customers against the risk of identity or credit theft.

E&O Insurance

You might provide a professional service where you make recommendations or give advice to clients. Though you might not intend for this to prove bad advice, it could cause inadvertent harm or a financial loss to your client. This coverage helps you provide them with compensation that results.

Employment Practices Liability Insurance (EPLI Coverage)

Businesses have to follow employment laws when hiring, terminating and retaining employees. Should someone within the business fail in that duty, the affected employee might sue. This coverage will help settle claims arising from allegations of harassment, discrimination, wrongful termination and similar practices.

Directors & Officers Coverage

Often, company principals like CEOs, COOs, finance directors and board members assume the highest degree of responsibility for company liabilities. Therefore, when liability lawsuits threaten, they might become personal targets. This coverage will protect them, their families and their personal assets from the ramifications of this suit. It’s often a bargaining chip that will ensure that you retain the best C-suite talent within your business.

Hired/Non-Owned Auto Liability Coverage

If you ever rent a vehicle for business, or if company employees use their personal cars on official errands, this coverage protects the business.

Should someone have a wreck while on business, this coverage will compensate affected third parties (like other drivers) on behalf of the business. This coverage can come as part of a CGL policy or you can buy it separately as part of commercial auto insurance.

Umbrella Liability Coverage

One of the best ways to expand your general liability policy limits is to buy umbrella coverage. Your standard general liability policy will include a maximum limit it will pay for claims. To expand on this coverage, you can buy an umbrella liability policy. It will provide expanded liability insurance on top of the limits of your standard policy.

Other industry-specific liability coverage needs might also be necessary to add to your policy. You might be able to add the necessary benefits to your insurance portfolio either by buying them as endorsements to your CGL policy, or by buying separate coverage.

Your agent is happy to work with you to determine the appropriate way to expand your general liability policy in the most appropriate ways. We understand how each line of liability insurance works, and we know how to combine it with the other benefits within your policy portfolio to ensure you receive expansive protection.

Essential Ways to Expand Your General Liability Insurance

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