Commercial general liability insurance covers are quite essential for many different types of businesses. So, if you’ve decided to buy it, great! But before you rush to make any financial commitment, it’s important to have a fair idea of the insurance itself and how it can come to your aid. In that context, here are 3 things you should know before buying commercial general liability insurance:
1. What it doesn’t cover?
Every business insurance policy comes with its own set of limitations. This one has its limitations as well. It’s important that you’re aware of what your commercial general liability insurance won’t cover so to avoid any surprises (and disappointments) in the future.
Among things the insurance won’t cover includes product guarantee, liability for fines or punitive damages, deliberate non-compliance with statutory provisions, copyright infringement, war risks and terrorism. Ask your insurance company what your commercial general liability insurance plan won’t cover.
2. Is it sufficient?
Sufficiency here means several things.
One, is the amount insured sufficient? Depending on the risk exposures, you may need a bigger coverage.
Two, is the plan sufficient to cover your needs or should buy other add-ons to make the plan more comprehensive?
Third, is this insurance policy sufficient to protect your business against possible legal claims? Usually, companies need more than just one liability insurance. Depend on your needs and various other factors, you should also invest in directors and officers liability insurance and other types of business insurance.
3. The terms and conditions
Insurance policies come with numerous terms and conditions. Many buyer overlook them, reluctantly buying the policy without being fully aware of the benefits and restrictions of the policy they are buying.
Don’t be one of them!
Before buying the commercial general liability insurance, make sure to read all the key terms and conditions. Consult an experienced insurance broker to get more insights. The more educated you are, the more benefits you can avail from the policy.
Conclusion
These are three important things you should know before buying a commercial general liability insurance policy.
Of course, there are plenty of more factors you should consider to ensure you’re buying the right insurance plan from a good insurance company. Get in touch with an insurance broker, tap on their expertise, and make a good investment that adequately shields you, your company and other relevant stakeholders against legal claims by a third-party.
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