Businesses involve not one but many stakeholders at once. Investors, customers, management, suppliers, intermediaries, government, trade associations, etc are all part of the supply chain in any organisation. Thus, all entities, whether internal or external to the business organisation is termed as a stakeholder.
With multiple stakeholders involved in any business, a liability may arise which requires the business to compensate for damages. Such liabilities may either be a product liability or a public liability and is incurred during the routine operations of the business. Hence, all companies that are involved in the manufacturing process or rendering of services to customers are advised to purchase a liability insurance cover.
These legal liabilities, most times are significant and may negatively affect the cashflows of a business. Using a commercial insurance that protects against such liabilities comes handy from a financial standpoint.
What is a commercial general liability insurance policy?
A commercial general insurance is a plan which covers the liabilities that may become payable to third parties due to legal accountabilities. This insurance plan safeguards the finances of a business due to these liabilities by compensating for not just the defence cost, but also other cost that are required during its legal recourse.
For example, a client visitsthe premise for inspection and during such visits sustains an injury on your property. Such injury may attract legal damages and a lawsuit isn’t the only impact of such event butmay result in hampering the business repute too. * Standard T&C Apply
Which type of organisations must buy a commercial general liability insurance plan?
Preferably, all business organisations must invest in a commercial insurance policy. All business organisations face different risks, and such an insurance policy helps protect against such varying perils. In addition, a commercial general liability insurance is not limited for business entities, but also can bought by professionals rendering services like consultancy firms, medical establishments, etc. Hence, irrespective of the scale of operations, all entities must buy one.
What are the different hazards that may lead to a financial liability?
Some of the events that commercial general insurance protects against is mentioned below:
- Third-party injury or property damage:Third-party damages cover the incidents like slippage, injury, electrocution of any third person for which the organisation can face legal charges. This policy bears the cost of medical expenses including the death of such third person. Further, any damages to the property of such third person like electronic devices, or any other belongings, the repairs and replacement cost is also covered by such third party coverage of your commercial general liability plan. *
- Intellectual property right claims: Any unintentional or intentional infringement of intellectual property right by the insured organisation for which compensation is required to be paid in form of settlement expenses or legal fees is covered under such commercial general liability plan. *
- Quality issues in products: Claims made by customers against any defective or faulty products can often result in a deep trouble for the business. With the help of a commercial insurance policy, these kinds of liabilities can be avoided by the enterprise. *
- Invasion of privacy: Any intentional or unintentional invasion of privacy by the organisation attracting legal consequences are taken care by a commercial general liability plan. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
