Here are 5 types of general liability claims and how to avoid them

You need to be ready for everything as a business owner. You could be held responsible for an accident that might result in you being sued, which could cost thousands of dollars. You would have to pay the costs of these claims out of pocket if you didn’t have general liability insurance. A general liability policy can help you to cover these expenses. You should do everything you can to minimize risk and avoid any accidents.

Claims for General Liability Insurance are typical

You can be sued for general negligence for many reasons. Find out what risks you face and how to avoid them.

These are five examples of general negligence claims that you can avoid.

1. Slip-and-Fall Claims

Slip-and fall claims account for about 10% to all small business insurance claims. The average claim costs around $20,000. A slip-and fall could be an instance of patron walking around your establishment and slipping on a slippery or wet floor. The patron then falls and suffers serious injuries that require medical attention.

How to Avoid Slip and Fall Claims

Make sure everyone is aware of hazards to avoid slip-and fall claims. To help people find a safe path, use signs and cones that indicate wet floors to direct them. To reduce slippage in high-traffic areas, make sure you have nonslip floor rugs pads or tape. Workers should be alert to any potential slippery floors and take immediate action to prevent them from becoming worse. General liability insurance often covers slip-and-fall claims.

 

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2. Third-party property damage claims

Third-party property damages are when someone else’s property is accidentally damaged by your business activities. Imagine a contractor moving a wheelbarrow along a client’s driveway. Then he loses control and the wheelbarrow collides against the client’s vehicle, causing a large dent.

How to avoid Third-party Property Damage Claims

Property damage claims can be avoided by paying attention to your surroundings while working on client property. You must ensure that there is enough space for you to work, without putting the client’s property at risk.

Your clients should always bring their belongings to your business. You can give clients access to a locker, or another safe place where they can store their belongings if they have to leave.

3. Personal & Advertising Injuries Claims

Advertising claims and personal injury are when someone’s reputation has been damaged by your actions. Usually, this is due to what you write or print in advertisements. One common example is when your competitor claims that you are a “crook” and makes a public statement about it. Your competitor could sue you if he loses business or his reputation has been damaged.

How to Avoid Advertising and Personal Injury Claims

It is possible to avoid personal and advertising injuries claims if you pay attention to what your employees and you say. It’s okay to make comparisons between your competitors and their facts, but it is best not to call them names or make disparaging remarks about them. If in doubt, avoid saying anything. Also, make sure that you understand how employees speak to customers. You should teach them how to talk about your competitors.

4. Claims for Products-completed Operations

Products-completed operations coverage kicks into effect if a product has a defect or other problem that causes injury or property damage. This coverage will not protect your business from recalls.

How to Avoid Claims of Products-Completed Operations

Set a high standard for excellence for all products to avoid product-completed operations claims. You must ensure that products are properly tested for safety and take customer feedback seriously. You might be alerted to a problem by someone else, even if no claim is filed. This can provide valuable insight into a potential danger you did not see.

5. 5.

Your general liability policy will provide incidental coverage for liquor-related claims if you don’t manufacture, sell, distribute, or produce alcohol. An employee hosting a happy hour for employees to celebrate reaching sales goals could lead to a claim. You could be held responsible if one of your employees drinks excessively and causes injury to another person while driving home.

How to Avoid Liquor Liability Claims

You will want to ensure that alcohol is prohibited at company events and on company property in order to avoid any claims for liquor liability. If you decide to hold an event with alcohol, ensure that you monitor who is drinking. You can offer ride-sharing to ensure that no one is driving under the influence. The event organizers should limit the amount of alcohol that is permitted.

What your General Liability Insurance Insurer pays for in a Claim

Your general liability policy covers the cost of a claim. It also pays any legal and investigation fees. If a person files slip-and fall claim for $30,000 in medical bills, lost wages, and other expenses, the policy will cover that amount – unless the insurer suspects fraud. In this case, an investigation may be conducted by insurance carriers to determine if the claim is fraudulent.

The amount paid to the insurance company for legal and investigation fees may vary depending on the policy. If you have only $100,000 of liability coverage, this can quickly increase your policy payout caps. To determine if you have sufficient liability coverage, review how your carrier calculates your claim value towards your per-occurrence or aggregate total.

3 Claims That Your General Liability Insurance Doesn’t Cover

third party claims are not covered by general liability. general liability doesn’t cover certain situations. These include:

  1. Professional liability claims Damages that result from errors in your work or workmanship are covered under errors and omissions insurance (E&O), not general liability.
  2. Workers’ Compensation claims: Employees who are hurt at work are covered by workers’ comp insurance, as required by law.
  3. Commercial auto insurance claims: If you are involved in an auto accident while on the job, your commercial auto policy will cover the liability and not general liability.

Bottom line

Avoiding claims and accidents is the best way for your company to save money on general liability insurance. You can’t avoid every bad event, so you need a comprehensive general insurance policy to protect your company and its reputation.

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