General liability insurance is a major component of the larger general insurance system to cover the risk of damages incurred by an insured against legal claims and other liabilities imposed upon them by creditors, lenders, and other third parties. This type of insurance covers all types of damages, including property damage, personal injury, and medical malpractice. The general liability insurance is primarily designed to protect the financial institution from having to pay out large amounts of money in claims, lawsuits, or settlements.
General liability insurance can vary greatly in what it covers and what it does not cover. General liability insurance will vary depending on the individual state and is often more expensive than your typical personal injury or health insurance. If you are looking to purchase general liability insurance, you should take a look at several different types and coverage levels.
The most commonly bought type of general liability insurance is called bodily injury liability. This type of insurance will protect against any claims of personal injury that occurs to the insured against any party. This type of insurance typically covers an individual or an entity that has been harmed as a result of another party's negligence. If the person or entity is injured or killed as a result of negligence from another party, then the policy will help to pay for medical bills and other claims related to the event.
Another common type of general liability insurance is property damage liability. Property damage liability is usually purchased as a standalone insurance product but it can also be added to a basic insurance plan. Property damage liability insurance will protect an insurance policy holder against claims of damage to a home, car, or other business property that may occur as a result of a physical occurrence. General liability insurance is typically purchased when a property owner or operator is being sued by another party for a claim that is tied directly to the ownership of their property.
Medical malpractice insurance is another type of general liability insurance. This type of insurance generally covers a medical practitioner's malpractice, which will help cover expenses for medical bills and any other claims resulting from a medical malpractice that the doctor may have caused. This type of insurance is typically more expensive than other types of general liability insurance, because it is designed to cover costs in cases of malpractice. and medical malpractice usually results in more claims of financial loss than other types of general liability.
No matter what type of general liability insurance you decide to purchase, it is important to always make sure that the plan is appropriate for your particular circumstances. You should also look at the terms and conditions of your plan to make sure that it is adequate for your particular situation and that you have covered all of your bases.