What is General Liability Insurance?
Businesses in many different industries are exposed to a variety of potential risks. Purchasing general liability insurance is one way Massachusetts businesses can safeguard themselves from some of the common perils they’re exposed to.
General liability insurance is one of the most widely needed commercial insurance products. Policies are purchased by lots of businesses, and they’re available from a number of insurance carriers.
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What Massachusetts Businesses Can Benefit from General Liability?
As mentioned, many Massachusetts businesses can benefit from getting a general liability policy. This includes businesses in different industries and of different sizes, as well as businesses with varying legal structures. Sole proprietors, limited liability corporations, S-corporations and C-corporations may all benefit from having general liability coverage depending on a business’ particular circumstances.Additionally, nonprofit organizations and governments might also want general liability coverage. In many cases, these organizations are exposed to the same potential risks that prompt for-profit businesses to purchase a policy.
What Coverages Are Included in General Liability Policies?
Broadly speaking, general liability policies normally come with a trio of primary protections. These protections are:
- Bodily Injury Coverage, which might cover third-party injuries that occur on company property
- Property Damage Coverage, which might cover damage caused to other parties’ property
- Personal Advertising Injury Coverage, which might cover libel, slander and false advertising claims
In addition to these protections, some policies also come with other coverages (e.g. product liability coverage). Whether these other coverages are sufficient for a specific business is situationally dependent. An experienced insurance agent can help businesses make informed decisions regarding any other protections that are offered.
(Exact protections can vary, and some policies may not include the three primary coverages listed.)
Do General Liability Policies Cover Employee Injuries?
General liability policies often cover certain third-party injuries that occur on company property, but they usually don’t cover employee injuries. Instead, employee injuries typically fall under the domain of workers compensation insurance.
Insurance agents who are familiar with general liability policies often also help businesses find workers compensation policies.
What is Are Comprehensive General Liability Policies?
“Comprehensive general liability” is essentially an antiquated term for what’s called “general liability” today. Policies used to be referred to as “comprehensive general liability” policies, but most insurance companies have updated their terminology so that it’s more accurate. While these policies protect against many risks, there are still some risks that require other insurance policies.Are General Liability Policies’ Premiums Tax-Deductible?
Premiums paid for a general liability policy are normally tax-deductible so long as the policy is only used to protect a business. Because tax laws change and are must be applied to each business’ particular situation, businesses should talk with a qualified tax professional before writing off their policies’ premiums as a business expense.