When businessowners look for general liability insurance, the primary focus is on bodily injury, such as customers slipping and falling. There is another part of general liability insurance, however: property liability. Property liability coverage provides compensation for damages to another person’s policy that may be caused by the business.
Here are a few examples of property liability claims that may face various businesses.
1.You are a contractor working on renovating a client’s kitchen. As you leave, you forget to turn off the water after making sure it works. The water floods the kitchen and causes expensive damage to the floors and cabinets, so the homeowner sues for the damages.
2. At a drycleaner, an electrical fire breaks out overnight and destroys and damages customer clothes, including expensive suits and dresses. Each customer demands compensation for their ruined clothes.
3. A customer brings their small dog into the salon for a bath and a haircut. The dog is put in a kennel until its appointment time. When it’s time for a bath, a groomer takes the dog out on a leash and walks it toward the back. On the way, they pass a larger dog on a groomer’s leash that is dog aggressive. The larger dog yanks free and attacks the small dog, killing it. Heartbroken and angry, the pet owner demands compensation.
4. Say a truck driver for your business accidentally drives into the garage of the warehouse they are delivering to when trying to reverse. The owner of the garage sues for the damages. This may be covered under your business’ general liability policy.
Does Everyone Need General Liability Insurance?
All businessowners need general liability insurance no matter what industry. General liability claims are frequent and can send a business into hard financial times—especially new businesses that don’t have huge reserves to pay for expensive lawsuits.
General liability insurance can help provide compensation to others and help the business with legal expenses such as court fees, defense costs and settlement expenses.
Keep in mind that every policy is different and your insurance needs may be different from the neighboring business. Speak with your agent about what is affecting your insurance rates and find out how you can save money on important general liability insurance policies. You may even be able to bundle your general liability with commercial property coverage into a business owners policy.