Small businesses in Farmington Hills, MI are advised to take out General Liability insurance cover to ensure that they have the right protection from financial loss.
The laws in Michigan make it clear that they may be liable for any personal injury and property damage that were caused by their services, business operations or employees that can be attributed to negligence.
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Understanding General Liability insurance coverage is an important first step in managing any business in Farmington Hills, MI.
All businesses must accept the possibility of being sued for accidental injury or damage to third parties.
What does Commercial General Liability Insurance in Farmington Hills, MI cover?
A comprehensive Commercial General Liability insurance policy should at the very least cover the following possible claims against the definitions of liability in Farmington Hills, MI:
- All damages awarded by a court in Michigan if you are found liable, or settlements negotiated with a claimant, up to the limits of the policy.
This cover provides protection against your legal liability as defined in Michigan legislation for any bodily injury or property damage to third parties due to negligent acts arising in the course of business, including any liability arising out of the state of your premises or business operations.
- Pollution liability and liquor liability may be excluded but could be purchased in Farmington Hills, MI as an endorsement.
- Professional liability and product liability are separate issues and must be covered by Professional Liability or Error & Omissions insurance or by Product Liability insurance.
An insurance professional can help you to determine endorsements that are right for your type of business.
- The costs of any legal defense in the event that a claim is made.
The provision of legal cover is regardless of fault.
Your own defense costs, and any costs awarded by a court, up to your policy limit, is fully covered.
- Costs for replacing or fixing property damaged or destroyed
- Damages claimed can include offenses such as libel, slander, infringing on copyright through the use of a third-party’s advertising materials
- Medical expenses including for injuries sustained by any non-employee caused by an accident that takes place on your premises or place where your business operations occur.
Medical payments coverage includes all reasonable medical, surgical, hospital, professional nursing, ambulance, and funeral expenses as well as loss of income for missed workdays.
Mental injuries and emotional distress can be included, even in the absence of physical bodily harm.
A few examples of occurrences in which your business could be responsible for paying various costs, such as medical and legal expenses, as well as compensatory and punitive damages:
- While visiting your premises, a customer trips on loose carpeting and is injured.
- An employee in your business engaged in painting and repairs accidentally leaves water running overnight, causing substantial damage to your customer’s home
- A class action lawsuit is filed against your business, alleging that your adverts comprise misleading information as defined in Michigan law.
Do I need business insurance in Farmington Hills, MI?
We are here to guide you in deciding on the proper levels of insurance at the best available cost.
Even before you start a business in Farmington Hills, MI, your planned business practices should take into account protection against unforeseen risks.
There have been too many instances in Michigan where an unexpected event caught even the most properly run small enterprise by surprise and ended up costing the owners far too much.
What are the main terms in General Liability insurance policies?
General Liability is a general term that covers a wide range of different cases.
Insurance companies will define their own terms and conditions, and there are some specifics relating to your own business that you should be looking out for to ensure that your policy matches your own requirements.
- General liability limits are described in the insurance policy.
The general aggregate limit is the most the insurer will pay for damages in the covered period.
For example, $2 million total claims in the insurance period, with a limit of $1 million per individual claim
- Claims up to the liability limits are guaranteed. As well, all associated legal costs for claims up to the limit are carried by the insurer
- There is a risk of potentially exhausting the cover if claims run over either of these limits. If a policy is exhausted, you could end up covering claims yourself, including legal expenses.
- The general aggregate is the maximum limit of coverage supplied by your general liability policy within the term of the policy.