What is General Liability Insurance?
General liability insurance covers claims that arise when you or one of your employees injures a client or bystander or damages their property. Your employees manufacture and import non-critical auto parts, so they routinely handle parts, assemble components, and ship finished goods to customers.
At any point in that cycle, mistakes can happen. When accidents occur, general liability insurance helps cover defense costs, settlements, and judgments that result from bodily injury, property damage, or certain personal and advertising injury claims.
Why is General Liability Insurance Necessary?
Many business partners and clients require proof of adequate insurance before they will work with you. Having a general liability policy reduces the risk that a single accident will stop a project or leave you responsible for large out-of-pocket costs.
Paying a regular premium is often far less costly than paying for medical bills, property repairs, or legal defense after a claim. Insurance lets you plan ahead for accidents you cannot entirely prevent.
What Other Types of Insurance Should You Consider?
Most Auto Parts Manufacturers General Liability Insurance policies focus on claims involving bodily or personal injury and property damage, but there are additional coverages you should evaluate.
Workers' compensation is mandatory in most states and covers medical expenses and lost wages when an employee is injured on the job. Without it you could be ordered to pay those costs personally.
Any company that manufactures products should have a Manufacturers Reps - Products Liability program in place to protect against claims that a product caused injury or property loss. You should also consider property and equipment insurance to protect costly machinery, and automobile coverage if you use company vehicles to transport goods or customers.
Many insurers offer package or group plans that combine coverages. Speak with an insurance representative or ask an agent to review what will be included in your general liability package.
Frequently Asked Questions
What does general liability insurance usually pay for?
It typically covers legal defense, settlements, and judgments for third-party bodily injury, property damage, and some personal injury claims.
Do I still need workers' compensation if I have general liability?
Yes. Workers' compensation covers employee medical costs and lost wages and is separate from general liability, which covers third-party claims.
Is products liability the same as general liability?
No. Products liability focuses on injuries or damages caused by your products, while general liability covers broader third-party claims not directly tied to a product defect.
Will a small claim raise my premiums?
Any claim can affect premiums depending on the carrier and claim history, but minor incidents handled without litigation may have less impact than lawsuits or large payouts.