General Liability Insurance at a Glance

What is General Liability Insurance?

General Liability Insurance protects your company's assets by providing coverage for liability claims against your business. This can include claims that arise from injuries or property damage that occur on your business property or those that are caused by you or your employees while doing business.

Also known as Public and Products Liability Insurance, General Liability Insurance helps protect you if you become liable to pay compensation or legal settlements for injury to third parties or damage to their property during your work. It can also cover the cost of your reasonable legal fees incurred from defending a claim against you.

What you should consider?

If you interact with the public as part of running your business, there is always a risk that an accident could happen. If a customer trips on an item at your business premises, or an employee damages customer property, you could be legally liable to pay the costs. This could include the cost of third-party compensation or expenses, in addition to the cost of funding your own legal defense.

Did you know?

39.14%

Is the Loss Ratio of all liability lines of business in New Zealand 2019.

(Insurance Council of New Zealand)

147,256,363

Is the total number of claims incurred in 2019 which includes all liability lines of business.

(Insurance Council of New Zealand)

What are the types of covers available?

Bodily Injury and Property Damage Liability

This type of coverage protects a business from liability for physical injury to a client or customer or potential damage to their property. In the event of such physical injury to body or damage to property, money damages could be awarded against the insured to compensate the injured party. A General Liability Insurance policy will provide funds to pay the damages, as well as provide a defense to any lawsuit.

Personal Injury Liability

Coverage includes claims such as libel, slander, and defamation of character. The policy will provide protection for claims of damage to a party's reputation.

Medical Payments

This coverage is designed to pay for an individual's medical expenses as a result of an accident at the business premises. This coverage supplements the Bodily Injury and Property Damage coverage.

Tenants Legal Liability

This type of coverage provides protection in the event of damage to the leased premises. This coverage only pays for damage to the leased premises and does not cover the personal property or inventory of the business.

What can it cover?

Some of the potential benefits of General Liability insurance policy may include:

Potential Benefits
Injury to, and associated medical costs incurred by, members of the public at your business premises or in relation to your business activity.
Damage to someone else's property, whether it is a physical premise (such as a building) or an item they own.
Bodily injury or property damage that result from faulty products or completed operations (work performed by your business).
Other third-party expenses awarded against you e.g., legal fees.
Negligent actions of independent contractors and subcontractors that you hire.

What is usually not covered?

Damage to a third party's property in your care, custody, or control, unless otherwise specified.
Contractual Liability: any liability assumed under a contract that requires you to affect insurance over property or to be liable regardless of fault.
Professional advice: If you provide professional services or advice, Public Liability Insurance does not cover you for errors, omissions, or negligence in relation to those services.
Faulty workmanship: Damage to property that must be repaired or replaced as a result of incorrect work performed by you or on your behalf, or the use of materials or equipment proven to be defective or inadequate in connection with such work.
Any liability caused by asbestos or any asbestos contained in other materials regardless of the form and quantity of asbestos.
Fines or financial penalties, punitive, exemplary, liquidated, aggravated or multiple damages whether imposed through a court of law, legislation or under a contractual arrangement or otherwise.
Liability for injury or illness to employees caused as a result of their work may be covered under a standalone Workers Compensation Insurance product which is not available under the Small Business Advantage Pack.

CASE STUDY

Robin lives in Washington and owns a construction company. A customer visits the construction company to look at sample flats of its newly constructed residential project. During the visit, the customer trips on loose flooring and suffers a leg injury.

Robin's commercial general liability policy, taken out by the construction company, covers the loss caused due to the medical expenses of the bodily injury of the customer.

Why choose FG Insurance?

  • Peace of Mind at Affordable Rates
  • Flexible Plans
  • 24/7 Roadside Assistance
  • Fast and Simple Claim Service - online or by phone
  • Modern Policy Wordings
  • Competitive Pricing