A good general liability policy can help your business protect itself against property damage that can hurt your entity. Your business strives to deliver top-tier services and products. However, sometimes things don’t go to plan, resulting in damage to vendors’ or clients’ property.
Using a General Liability Policy to Help Cover Significant Damages
While business property insurance may not help in this instance, another type of policy can protect your company from the repercussions of a civil suit.
What’s the Difference Between General Liability and Business Property Insurance?
Most businesses need more than one type of insurance to protect their assets. One of the most important is general liability, which covers the legal costs should a third party sue for alleged property damage or bodily injury. That includes paying a settlement or the awarded amount if the plaintiff can prove that your services, products, or operations caused the damage.
Can a general liability policy help with property damage if you accidentally break your own equipment? Unfortunately, this type of insurance only covers damage sustained by a third party. However, business property insurance covers commercial assets and can even provide loss of income payouts to ensure your business stays energized during recovery.
A business property coverage usually includes the following:
- Snow damage
- Fire
- Theft
- Wind damage
- Vandalism
What Else Does a General Liability Policy Cover?
As the name implies, a general liability policy usually offers broad coverage. However, it doesn’t cover everything related to third-party damages. The following are standard exclusions:
- Damage caused by professional errors
- Damage to company-owned vehicles
- Employee illnesses or injuries incurred on the job
Insurance companies can also refuse to pay for typically covered situations if illegal activities create the scenario. Policies also have limits, so you may not receive a payout for total damages if they exceed the established limit.
Fortunately, there’s plenty that general liability does cover:
- Defamation of another company, business owner, or person
- Third-party injury that occurs on your property
- Harm to another company’s reputation
- Damage to a third party’s buildings or tangible assets
- Unpermitted use of copyrighted material
Many companies need more specific coverage due to their industries. Just like business property insurance, you can add the following policies on top of general liability:
- Product liability
- Commercial auto
- Professional liability
- Commercial umbrella
- Cyber liability
Who Needs Business Property Insurance?
You can benefit from a business property policy if your business owns valuable real estate or assets. That includes property you store at home.
For example, if you run a small business out of your house, this type of insurance can safeguard your equipment and separate workspaces (such as a detached guest house, garage, or home office). Since these are technically part of your primary residence, homeowners typically cover it — but only to a point. Calculating your commercial property’s total value is an excellent way to decide whether you need a policy. You can benefit from additional coverage if it’s more than $2,500.
Finally, business property insurance gives you more location options and professional opportunities. Many landlords require insurance as part of the rental agreement, so you may need to acquire a policy to expand your enterprise. An active policy also provides assurances to customers and business partners.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
