Anytime you have goods or services to provide, you should have a plan in place for how you'll

pay for them if something unexpected happens.

General Liability Insurance is a form of insurance that protects a company from the financial
risks associated with its business. It also Insures against the risk of losing money because of
inaccuracies or omissions in its products or services.

What Is General Liability Insurance?

General Liability Insurance protects your company from the financial fallout of an accident, or
any other third party's negligence. This type of insurance is typically inexpensive and crucial for
large corporations to protect themselves from the potential legal expenses and liability that
come with being involved in an accident.

Why Is General Liability Insurance Important?

When you have general liability insurance, you have a financial shield that covers you if
someone else goes out of their way to cause you harm. Without it, you could potentially be left
with nothing if someone was to sue you for an injury caused by their actions. You need general
liability insurance because if something were to happen to you, your employees or contractors,
and then you end up in court, you could potentially be sitting in a room with a long list of
defendants. With general liability insurance, you could potentially have coverage for everyone
involved in the case, including the judgment holder.

What is Covered Under General Liability Insurance?

Theft, Damage and Destruction

This kind of insurance protects against a covered loss caused by a covered theft or damage to
property. The broad definition of theft includes robbery, breaking, and embezzlement. The
insurance also protects against damage to property caused by an insured person's defective,
faulty, or unauthorized act.

Forgery of negotiable instruments

Forgery and alteration are fabricating or altering a negotiable instrument to fraudulently induce
or alter its value. These coverage types are also sometimes called "counterfeiting". The
insurance protects against damages caused by forgeries or counterfeits.

Fraudulent manipulation of insured computer System

The fraudulent act may cause damage to the computer or equipment used to access the
system, or it may cause damage to data or financial records stored on the system. Misuse of an
insured system may result in bodily injury or damage to property. The insurance protects
against such damages.
Fraudulent Electronic Fund transfer

This transfers funds electronically by a bank or other third party. The bank or other third party
uses mathematical code or a computer algorithm to authenticate the transfer. The encryption
and the authentication process are complex. The insurance protects against the unauthorized
use of the funds.

Social Engineering Fraud

This uses a person's legitimate name, address, and credit card number to open a bank account
or get a job. The fraud may be unintentional or involve extreme negligence, such as mistaking
the address for the home.

What is Not Covered Under General Liability Insurance

Data Theft

Data theft refers to the unauthorized or wrongful acquisition of private data. Special data
protection policies often cover data theft. But general liability insurance does not cover data
theft.

Property Damage Caused by Fire

Property damage caused by fire is not covered under general liability insurance. This includes
damage caused by electrical fires, gas fires, oil fires, etc.

Expenses Incurred in compiling proof Of

The expenses incurred in compiling proof of insurance are expenses related to gathering
relevant information and documentation to support a claim, preparing and filing a claim, and
dealing with any legal issues. General Liability insurance does not cover the expenses.

Fines and Penalties

Fines and penalties are also not covered under general liability insurance. Insurance companies
are legally required to cover fines and any applicable court costs. However, a court judgment or
settlement payment is not considered a fine or penalty.

Indirect Losses of any Nature

Indirect losses of any nature are not covered under general liability insurance. These include,
for example, losses caused by war, revolution, terrorism, natural disasters, pandemic, industrial
pollution, and more which could lead to a loss of profit.
Conclusion

With so many risks and opportunities, it's important to have proper insurance coverage. With
general liability insurance, you cover yourself and your employee in case of an accident or other
situations where an outside party's negligence could result in financial damages. The key with
general liability insurance is to get the right coverage for your needs.