General liability insurance is the kind of insurance that a business obtains to protect itself against lawsuits that may be filed against it by people who visit the office or place of business. Note that liability insurance does not prevent a person who filing the lawsuit, but rather passes the payment of legal fees, settlements, or mandatory fines to the insurance company rather than the company itself. What exactly does liability insurance cover against?
Primarily, liability insurance is used to cover the medical costs of an individual that sustains an injury while at the office, storefront, or site of the business. Note that this does not cover medical costs for injuries that employees sustain, as that is instead covered under workers’ compensation insurance. Liability insurance would instead cover everyone else. For example, if someone slips and falls at a store, the insurance would cover the costs of that case, but not if an employee did the same thing.
In addition to covering the medical costs for bodily injuries, liability insurance also covers against any property damage that may have been caused as a result of the company or that happened on company real estate. Liability insurance also protects the business against situations that arise as a result of advertising in an illegal manner, such as if libel, slander, or copyright infringement come into play.
Due to the wide range that employer’s liability insurance covers, it is considered essential by most business owners. If you are a business owner or manager and caught up in a case with your insurance company or similar situation, we at the Franco Law Firm may be able to assist. To learn more about the services that we offer and to schedule a free consultation with us today, please call us any time at (813) 872-0929.