With the number of liability claims against businesses on the upsurge, it is necessary for any modern business to get general liability insurance. Also known as public liability, this type of insurance covers a company against third party liabilities that might arise out of various business operations. From simple slip and trip accidents to major property damages, a number of incidents can establish grounds for lawsuits against your business on account of third party liability. One way to save the high cost of such legal liabilities is by taking a commercial liability insurance policy.
What Do the Statistics Say?
The liability insurance sector in Singapore has seen robust growth in 2013. The country’s public liability insurance sector has seen an overall 14.86 percent growth, with the sector’s underwriting profit soaring by 110.44 percent to $51.88 million in 2013, according to statistics from the General Insurance Association (GIA) of Singapore, a trade association which represents general insurance companies in Singapore. This goes to show that awareness on the importance of liability coverage is rising among business owners in Singapore.
What are Covered?
General liability insurance covers your business against legal liabilities arising from bodily injury, property damage, and damages from fire, lightning and others. This type of policy provides cover against the following legal liabilities.
· Products – This type of coverage protects your company from a legal liability that might arise out of any injury or damage to a third party as a result of using the company’s products.
· Premises – If you a bodily injury or property damage results from an accident on your company’s premises, it can establish grounds for a claim. Financial losses your company suffer due to such claims are covered under this type of insurance.
· Professional – Mistakes committed by your employees may sometimes cause injury or damages to your clients. In such cases, claims can be made against your business. Losses you might suffer as a result of professional mistakes or negligence on the part of your employees are also covered under a general liability insurance policy.
· Management – Some policies also cover legal liabilities arising from any breach of duties by management staff of your business.
A comprehensive policy may also cover employer injury, advertising injury, medical expenses, employee benefits liability, and tenant’s legal liability. The type of coverage you need depends on the nature of your business and the amount of risks associated with it. The premium also depends on certain factors, such as, risks associated and the company’s history of filing claims.