General & Products Liability for Today’s Risks

General Liability insurance protects your business against financial loss resulting from claims of bodily injury, property damage, personal injury, like libel and slander, and advertising injury to others caused by your business or your employees. Exposures come from a broad spectrum of sources, including accidents on your premises and third parties getting injured while using your product. A General Liability policy covers the cost to defend or settle claims even if they are fraudulent.

Just having the coverage is not enough. The amount of coverage you should be carrying depends on several factors:

• The type of business you are in and the perceived risks associated with it.
• Your business location. For example, some states tend to award more in damages to plaintiffs claiming personal injury than others.
• Contractual requirements from your landlords, vendors, distributors or retailers. We are well-versed in supporting our client’s review of these agreements.
• What is and isn’t covered. While a General Liability policy covers a lot, there are certain risks that won’t be covered. Some policies have Defense Inside the Limit of Liability, while others provide Defense Outside the Limit of Liability. Product Recall is typically not covered under a General Liability policy, but some insurance companies may offer a small enhancement for this. Aircraft products and critical auto parts may need to be insured separately as well.

The bottom line is that you need a risk consultant to analyze your risks and recommend the appropriate coverage.

For example, employment-related disputes aren’t typically covered unless Employment Practices Liability Insurance is included under the policy or purchased separately. Professional liability exposures are not covered under General Liability, so specific coverage should be secured for all those who are in the professional services sector. Management liability risks are also not typically covered and will have to be addressed with Directors & Officers Liability coverage to round out a comprehensive insurance program.

Our professional staff will help determine how much coverage you need, whether additional liability limits are needed with an Umbrella policy and which other insurance products should be added to our program for robust coverage.

If your business manufactures, sells, or distributes products and services, there’s always the risk that you could someday be sued for product or completed operations liability issues. Products Liability insurance protects your business from claims related to the manufacture, sale, and distribution of products. Lawsuits claiming losses or injury due to defects, malfunction, faulty design, or a failure to provide proper warning or instructions can come directly from your client, from their customers, or from another third party. Products Liability insurance covers medical costs, legal fees, and awarded damages, and can be extended to include the cost of recalling and destroying products as well as the resulting loss of business.

Premiums for Product Liability coverage take into account product, sales volume, and your business’s claims history. The best way to keep premiums down is by managing and minimizing your risk, through strong quality control measures and contractual risk transfer to other parties in your supply chain, if possible.