What Is General Liability Insurance?

What_Is_General_Liability_Insurance.jpgNothing is more confusing than an insurance policy with all of its perplexing legal terminology; even after reading your policy you might not understand what is covered and how. Continue reading to find out about the most basic insurance coverage, general liability insurance. We’ll help clarify what you should have in your policy, why you need it, and what is normally included as part of the policy. By the end you should have a much clearer understanding of general liability insurance.

The Foundations

General liability insurance is foundational to any good insurance plan. This category of insurance provides coverage for injury to a third party or damage to someone’s property when the organization has been negligent or is legally responsible for the injury or damage. If a claim is made against a business, general liability insurance provides claim investigation as well as a legal defense and legal expenses—alleviating a lot of burden.

Why You Need It

General liability is meant to provide you with protection from the uncertainty of running a nonprofit organization. It is an essential insurance coverage that a nonprofit shouldn’t go without.

Accidents happen every day and you want to have the peace of mind that you can pay for the injuries and all associated damages. Additionally, people can sue you anytime for anything and it’s important that you have the strength and knowledge of an insurance company behind you to defend those lawsuits. Lastly, you want to be able to protect and provide a defense for your employees and volunteers if they are brought into a lawsuit because of the work that they do for you.

Some Examples

As discussed above, primarily your general liability covers you for bodily injury and property damage claims. For example: A person comes to your thrift store to shop, trips over a tear in the carpet, and breaks their leg. Your organization is responsible for the proper maintenance of your store and so you are legally responsible to get medical help and pay the medical bills associated with the bodily injuries to the shopper.

Another example: A person parks their car on the street outside of your thrift store. A strong wind blows your awning off and it hits the car and dents it. You are responsible for adequately securing the awning to the building and therefor are responsible to pay to repair the property damage to the shopper’s car.

Let’s Recap

General liability Insurance is a complex coverage and also provides protection from claims and lawsuits associated with operations that may injure someone or damage property. It may also provide coverage for personal and advertising injury, incurred through slander or false advertising, and damage such as fire to the portion of the building in your direct control. Finally, general liability insurance may cover medical payments for small incidental injuries to people other than your employees even if no fault or negligence is established on the part of the organization.

Be sure to find a knowledgeable agent who can determine the right policy for you.

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