It is very likely that if you are looking to run a business, then you legally need general liability insurance in order to do so. It isn’t a universal law, but in most cases, if the general public visits your location, then you need this type of insurance. However, keep in mind that this isn’t a catch all type of insurance. Just like there are different levels of car insurance, you may need different levels of business insurance to remain fully protected.
Poor Performance Means Fewer Payouts
Perhaps the easiest way for an insurer to get out of paying your claim is if the problem caused was your fault. The more it is your fault, then the less likely it is that the insurance company will pay your claim. The insurance company’s best scenario is where they can prove that you were not doing your job correctly, that you were being negligent or dangerous. In those cases, your insurance company can probably wiggle out of paying.
If you are being sued for some sort of negligence or very poor performance, then your insurance company may be able to wiggle out of paying. If you can show that you took every step and every measure to be sure it all went right, and it still went wrong, then your insurance company will have a harder time refusing your claim. Remember that you are responsible for your staff, and their mistakes are still your problem. There are a variety of insurance policies for employees but be aware that even if your manager makes mistakes that cause injury to the general public, you are still legally responsible and you still need to show you took every step to prevent whatever problem occurred.
Your Employees Are Not Covered
You probably know you need a separate insurance policy for your employees, and again, in most countries, you legally need some sort of employee liability insurance in order to run a business legally. The problem some businesses have is that circumstances often mean that employee liability and general liability get all mixed up. It is tough to figure out which policy pays which, especially if employees and customers are hurt during the same incident.
Nevertheless, your general liability insurance is almost never going to pay out if the claim directly involves an employee, such as if your employee is trying to sue you for compensation and medical bills. If employees are involved, then you will need to claim off your other insurance policies.
There are Better Insurers Out There
The problem with some insurers is that they see general liability insurance as a way of selling you nothing. They offer terms that are too vague to ever apply to you, or that are so specific that they will pass off your insurance claims to whichever other insurer you have rather than consider your claim. It is up to you to find a better insurer. You need to look towards a company like Mona’s Insurance to receive a fair deal on your insurance. If you pick the right company, then you can enjoy the right level of protection without the risk of overpaying.