Accidents can occur when the company performs tasks at a customer’s home. Electricians, plumbers, and painters are among the workers who are most likely to cause damage to clients’ property.
The last thing you want as a business owner is to damage a client’s property. However, some computer repair or regular accidents are inevitable. That is why companies should have property damage liability insurance, a coverage that can protect you from various claims, including property damage.
For instance, a painter needs to move a table to access a wall they are painting. However, the vase on the table gets irreparably damaged during the move. The destruction of the vase is not covered by the typical company owner’s liability policy.
Now, let’s examine the specifics of general liability coverage.
Business liability plans start with an “Insuring Agreement” that specifies what the insurance provider is willing to pay. The key element of general business liability coverage is that damage caused by an “occurrence.” A simple definition of this is an incident that causes property damage or physical harm that neither the insured party expected nor intended.
General liability insurance protects you from costly claims that may arise during usual operations. It also provides insurance protection coverage for your business and for the majority of small entrepreneurs.
What is covered under general liability? A typical policy entails the following:
- Inflicting harm on the reputation of a brand by utilizing copyrighted artwork in advertising
- Coverage for bodily injury in case of falls or other mishaps
- Damage to a client’s possessions or property
- Libel or slander that damages a person’s reputation
What if someone sues your company for property damage?
You must first understand the difference between a claim and a lawsuit. Both situations are covered by general liability insurance. However, they are significantly different from one another. A liability claim solely concerns insurance companies, yet it implies that you or your company made a mistake. On the other hand, a lawsuit is filed after a claim if the companies cannot reach an amicable resolution.
Even while not all lawsuits go to court, they shouldn’t be treated lightly because you can lose a lot of money in court. You should immediately contact your insurance provider and seek legal counsel if someone sues your organization for property damage. The first line of protection against litigation, especially for small business owners, is often a general liability insurance policy.
Who needs liability insurance for property damage?
As a business owner, you must obtain liability insurance for your organization and yourself. A single claim for property damage may spark a costly legal battle for your business. General liability insurance includes a variety of liability protections, including property damage coverage, from which most firms could benefit.
If you handle your customers’ property and are unsure if you have the necessary coverage for typical incidents, call your independent insurance agent immediately to review your exposures and the insurance available to cover those risks.
