The unexpected can strike any business, leaving it vulnerable to lawsuits and financial disruptions. General liability insurance and business interruption insurance are crucial components of a risk management strategy for businesses across all industries.
General liability insurance provides protection against claims of bodily injury, property damage, or personal injury that may arise during regular business operations. It covers legal defense costs, settlements, and judgments, allowing businesses to continue functioning while managing claims. This type of insurance is often required in contracts with landlords, vendors, or clients and can be instrumental in securing new business by demonstrating professionalism and preparedness.
Common scenarios that lead to claims include accidents involving customers or contractors. The "duty to defend" clause in most general liability policies obligates insurers to provide legal representation even if the claim is unfounded. Prompt reporting of incidents is essential to avoid delays or coverage denials.
Understanding the inclusions and exclusions of a policy is vital. Reviewing the ISO Commercial General Liability form or consulting with a broker can help identify gaps and recommend endorsements for extended coverage.
Business interruption insurance comes into play when a covered event forces a temporary shutdown of operations. It helps replace lost income and cover ongoing expenses due to disruptions like fire or storm damage. This coverage is typically part of a commercial property or business owner's policy (BOP) and ensures financial stability during closures.
Pairing general liability with business interruption coverage offers comprehensive protection against both legal and operational threats. Without these insurances, businesses face significant financial risks from lawsuits or forced closures due to property damage.
Assessing current policies with the help of a broker can save money and stress in the long run by balancing cost with necessary protection.
AssuredPartners works with various industries to build insurance strategies that protect assets, operations, and long-term goals. For more information or advice from licensed advisors, businesses are encouraged to contact their local AssuredPartners representative.