Hawaiʻi businesses protect themselves and their livelihoods through the power of commercial general liability (CGL) insurance.
Join us as we explore the world of general liability insurance in Hawaiʻi, and examples of how this coverage can come to the rescue for your business.
What Is General Liability Insurance, and What Does It Cover?
Commercial general liability insurance shields businesses from a wide range of claims, including property damage and personal injuries. While businesses are not legally required to carry general liability insurance in Hawaiʻi, it becomes invaluable in the event of a claim.
There are specific situations that make this coverage essential; for instance, contractor licenses in Hawaiʻi require general liability insurance.
In other instances, commercial general liability insurance policies offer protection against property damage or injuries occurring on the business premises. This coverage can also safeguard businesses against claims of libel, slander, and advertising injury.
Five Examples of General Liability Claims Protecting Businesses
Quickly addressing a general liability claim can protect businesses by helping them to continue operating after certain events. Here are five examples of general liability claims, each offering a better idea of the protection this coverage can provide:
1. Slip and fall accidents at a grocery store
Slip and fall accidents account for more than a million visits to hospital emergency rooms, according to the National Floor Safety Institute. Imagine a customer entering Times Supermarket and slipping on a freshly cleaned and polished floor, resulting in a bone fracture or head injury.
In this situation, the business could face a lawsuit demanding compensation for medical expenses. Without general liability insurance, the business owner would have to cover these costs out of pocket. With the protection of a general liability policy, these expenses may be covered up to the policy limits.
2. Property damage claims at a restaurant
Even with the best precautions, businesses may still have property damage claims. Consider a catering company that frequently travels to customers’ homes to set up buffets for personal events, such as graduation parties.
During one event, employees set a hot dish directly on the customer’s table, causing damage to the table’s finish and burning the wood. The customer could file a lawsuit seeking compensation for property damage. General liability insurance may step in to cover the repair or replacement costs for the damaged table.
3. Accidental invasion of privacy from sharing photos
In most industries, customers rightfully expect privacy when receiving business services. However, mistakes can occur. Imagine a professional housekeeper taking photos of a client’s home to showcase her work on social media.
If the housekeeper fails to obtain permission from the homeowner to take and post these photos, it could be considered an invasion of privacy. In such cases, general liability insurance can assist in covering legal expenses or judgments resulting from a lawsuit.
4. Accidentally injuring a client at a salon
Any business involved in the creation or sale of products could be held liable if those products cause property damage or personal injury. Let’s say a beauty salon expands its offerings to include hot tools like straighteners and curling irons.
If a client purchases a curling iron, plugs it in, and it overheats and catches fire due to a defective design, the salon could face a product liability lawsuit.
Fortunately, product liability coverage is often included in general liability policies. This means that if a product damages a customer’s property or causes physical injury, the coverage will help pay for any necessary repairs or medical bills.
5. Copyright claims from posting on social media
Copyright gives the owner of intellectual property exclusive rights, including public display. For example, the owner of custom graphics may sue a business that posts these graphics on their social media accounts without first getting proper permission.
If a business is sued for damages due to advertising copyright infringement, general liability insurance can come to the rescue by covering related costs up to the policy limit.
All businesses face risks during the course of doing business. Depending on the industry and the size of the business, the risks and the coverage needed to protect against them, will be different for each business.
Working with a local insurance provider can ensure your policy is tailored to meet the needs of your business.
Count on Atlas Insurance Agency for Your Business Insurance Needs
Many businesses in Hawaiʻi can benefit from the protection provided by general liability insurance. At Atlas Insurance Agency, we provide comprehensive CGL policies to protect businesses against financial losses stemming from liability claims.
To discover more, or to request an insurance quote, reach out to Atlas Insurance at (808) 400-6634. Thank you for considering us to safeguard your business!