General Liability Insurance

General Liability Insurance

Well, Liability insurance basically covers any loss or damage to a third party. The loss or damage can be inflicted physically on a person and/or in relation to property. For example take a working scenario on a building site. If a worker gets injured and that worker has followed the correct procedure to the letter and was not provided with the proper tools to complete the job (i.e. a hard hat or a stable ladder). Then the company would have to pay for the damage or loss incurred by the employee.

A property example can be found in the car rental business. Many car rental companies have an excess limit of X amount of money. This limit is the maximum the customer has to pay if there is any loss or damage to the vehicle. The customer has a duty of car to that vehicle. On the other hand, the customer can pay to take out insurance at a premium to cover any loss or damage they may suffer in the event of an accident whereby the company have the duty to cover any loss or damage they may suffer in a physical sense.