When you insure your business, you'll probably need general liability insurance. It will help you pay for the harm done to others as a result of the business' mistakes or negligence. Some of these might be personal injuries, which are often a lot different than you might think. Take a deeper dive into your policy's personal injury insurance to see how it might help after a problem in the business.
Understanding Liability Insurance
When you buy a liability insurance policy, you insure your business against the fact that it might accidentally harm someone else. Should the harmed person sue, your liability policy might help pay settlements owed. It can also help you cover both your own and the other party's legal expenses. Your policy will make it easier for you to weather these storms and avoid a big financial hit.
Most people think of liability policies as covering bodily injuries or property damage. If someone slips and falls in your business, for instance, then your policy will likely help you pay for their losses. Still, there is another liability—personal injuries—that your policy might also cover.
What Are Personal Injuries?
Personal injuries are not the same as bodily injuries. A bodily injury liability claim usually applies to physical harm someone else sustains. Personal injuries are not physical. But they might apply to losses that threaten someone's security or harm their reputation. Some of the liabilities covered under personal injury coverage might include:
- Libel caused by spoken word actions that harm someone else.
- Slander in written or published materials.
- Malicious prosecution by the insured party against someone else.
- False arrest.
- Invasion of privacy occurring when the business infringes without permission into someone else's affairs.
- Advertising injury caused by the business' promotional materials.
- Copyright infringement alleged by someone who thinks that you stole their idea or product.
Businesses often face personal injury liability claims from competitors. However, even members of the public might try to levy such claims. Even if the claim has no merit, that doesn't mean your business won't have to address the issue.
Hiring a lawyer, going to court and reaching a settlement (if necessary) might all cause a lot of costs to rack up. If you are unable to make up these losses, then you could put the business in unstable financial waters. The goal of your personal liability coverage is to help you reduce the blow of such accidents.
Let your Deale & Associates Insurance agent help you determine the right way to adjust your policy to cover the cost risks your business might face anytime.
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