Understanding Liability Insurance
To understand liability insurance, replace the word “liability” with “lawsuit”. Liability insurance covers the insured (you or your organization) for the costs of:
- lawsuits alleging negligence
- misconduct
- mistakes that happen on your watch
Who Does Liability Insurance Cover?
The most common policy is for general liability insurance. But there are also specialized types of liability insurance including coverage for:
- directors and officers (D&O insurance)
- operating a vehicle (Automobile)
- your employees (Worker’s Compensation)
- hacked online (Cyber Security insurance)
- and more
When Is Liability Insurance Coverage Needed?
General liability insurance coverage comes into play for:
- slip, trip and fall
- physical injury or accident on your property, etc.
- property damage on someone else property
For example, you damage property owned by someone else and are responsible. You may be responsible for paying for these damages yourself.
A claimant must prove the business or property owner is legally responsible. In the meantime, legal bills are racking up for both the accusers and the defendants.
The average cost to defend a lawsuit is $50,000.
The average judgement runs over $100,000.
May also include paying for damages to the injured party
General liability insurance is valuable protection that typically extends to cover litigation costs.
No matter how well you prepare and maintain, accidents can and will happen. People still slip on wet floors even though bright yellow, wet floor signs are visible… Even when non-slip floor mats are present at the door to dry feet as a precaution… Even when providing plastic bags to wrap wet umbrellas so water doesn’t drip on the floors.
As a house of worship, educational institution, or a non-profit organization… You strive to bring the community through your doors and at sponsored events. At Beacon, we can help you select affordable general liability coverage. Insurance protection that suits your specific needs based on what you do. Call the experienced insurance agents at Beacon Insurance Agency to learn more about the insurance coverage we can provide you today!