Basics of General Liability

When searching for the best insurance coverage for your business, you will probably run into commercial general liability, which is also known as causality insurance. General liability covers third-party claims, or claims that are filed by someone other than the policyholder. This includes coverage for bodily injury or property damage to another person that is caused by, or came out of a business’s operations or the use of their facilities.

General liability insurance provides coverage for any amount of money that a company is legally obligated to pay, which includes all legal expenses that stem from the incident. It also provides coverage for losses that are due to personal injuries, such as false arrest, slander, libel, invasion of privacy, wrongful eviction, discrimination, and civil rights violations. General liability also covers employees who are acting in the course of their employment.

There are two types of commercial general liability insurance. The first is occurrence form, which covers all claims, no matter when they are made, that stem from incidents made during the policy period. The second kind is claims-made, which only covers claims that are made during the policy period. Some typical exclusions include:

  • Intentional acts, or purposeful violation of the law
  • Contractual liability other than an insured contract
  • Worker’s compensation
  • War
  • Faulty workmanship
  • Publishing statements that are known to be false
  • Breach of contract

In order for a suit to be filed against a public entity or public employee, a notice of claim must be filed. In most cases, a lawsuit must be filed within one year of the incident.

For the best, most comprehensive business insurance in the Fresno, California area make sure to contact McCarty Insurance. As a family-owned independent insurance agency, they will search through their affiliate to ensure that you get the best coverage at the right price.