North Little Rock Insurance And General Liability Coverage

We all hear on a daily basis about how litigious our society has become and we can gauge this by the ever present ads we see of lawyers promoting their services. If it weren’t unfortunately true, the commercials would almost be funny. However, lawsuits are common today and the court systems are overloaded with pending cases. Even a small accident can result in a huge lawsuit as North Little Rock Insurance professionals can attest.. For a business owner, lawsuits can have a devastating effect on the business and could even result in the loss of the business entirely.

In this article we will discuss the importance of general liability insurance and how it can protect your business. A general liability insurance policy is designed to protect a business’s assets in the a lawsuit is filed by a customer, vendor or just about anyone that has suffered an injury or incurred property damage that is the fault of your business. Lawsuits are expensive and time consuming which can have adverse effects on the bottom line and eat into profits and in some cases, result in a business closing the doors.

Although it is not recommended since maximum coverage limits are low, general liability insurance can be purchased in what is known as a Business Owners Policy. A business owners policy combines both property insurance and general liability insurance into one policy. For smaller companies this may be the policy that will most feed the needs of the business. However, for more coverage to cover risk, a general liability insurance policy should be purchased as a stand alone policy to maximize coverage limits.

Before purchasing a general liability policy from your local North Little Rock insurance agent, important considerations should studied. First, the business owners should understand what his risk are when conducting day to day operations. For example, a business that operates primarily over the Internet and operated out of a home office would most often have very little risk and would need a small amount of liability insurance. Whereas a company such as a plumbing business would be open to far more risk since this type of work involves on customer site service as well as the added risk of utilizing vehicles. Understanding what your potential risk are as a business owner is very important in determining the amount of coverage needed.

If you are unfortunate enough to find your business involved in a lawsuit, it is important to understand, under the terms of a general liability policy, your insurance company is obligated to cover cost involved with the lawsuit or claim awarded by the courts. These awards or claims could involve real property damaged caused by you or your employees to the property of the litigant. The insurance company would also be required to coverage damages for bodily injuries. In the business world, competition drives capitalism and in this competitive environment, business often run afoul of each other and a liability policy would also be obligated if your business were responsible for advertising injury such as false advertisement or slanderous statements made by your company about another through an advertising campaign.

Other damages that can be awarded and covered under a general liability policy are compensation damages which are designed to compensate for pain and suffering. All general liability policies will state the maximum amount of coverage and limits provided by the policy while the policy is in force. In most policies there will be a maximum amount listed for the amount to be paid per individual occurrence. If a business had a general liability insurance policy in force with a maximum of $2 million per occurrence and the business were involved in a liability lawsuit with damages awarded for $3 million, the insurance company would pay $2 million while the business would be liable for the remaining $1million.

Although there are policies designed to cover business owner over and above the general liability insurance policies stated maximums, the scope of this article will not cover these. For more information about extended coverage past the limits of your general liability insurance coverage, please contact your local North Little Rock insurance agent for more information. These type of policies will be outlined on this blog at a later date.

In today’s world where the possibility of unfortunate incidents exist on a daily basis, it is important that the business owner protect his business from possible damages that could destroy the business. Lawsuits and litigation are costly. By first considering your needs and potentials for risk as a business owner, you can determine what type of general liability insurance policy you need and the maximum limits needed for proper risk control and protection. Having one of these policies in place will not only protect your business but will also proved you, as a business owner with the peace of mind you need to grow your business. Contact your local North Little Rock insurance agent to find out how you can protect your business. Insurance professionals are trained to provide you with level of service and protection you need.