What is general liability insurance?

Updated March 10, 2021

Do you know what a general liability insurance and what are your coverages? During this article we will reveal to you what services this type of policy offers and the advantages it provides to both individuals and companies.

What is general liability insurance

According to the Law, every person has the obligation to compensate others for the damages that may be caused to them, whether by action or omission. Among the compensations to repair said damages we find several alternatives, but, in general, recourse is had to the compensation, that is, to the payment of a certain amount of money that will be determined by judicial means.

With the general liability insurance We will have coverage to deal with damages that may be caused to third parties.

What are your coverages

The damages that these policies cover depend on what each insurance company offers, since, on occasions, it is possible to expand the services.

However, there are a number of basic coverings:

• Bodily harm They are those referring to the physical integrity of the person.
• Material damage. They occur when there is a loss or destruction of objects and animals.
• Property damage arising from bodily or material damage.
• Covers judicial and extrajudicial expenses.
• If the judicial courts require a surety, the insurance will take over the capital that has been established in the policy contract.

Differences between general and professional liability insurance

The general civil liability insurance covers personal, material and economic damages to third parties contemplating the exercise of professional activity, not including cases of negligence or error. It can be hired by both individuals and companies.

We should not confuse this type of policy with the professional liability insurance, since the latter covers economic damages that may occur due to errors, omissions or negligence during professional activity.

What the Law says about civil liability

To understand the importance of this insurance, let’s see what the Law says about it.

In Spain, article 1902 of the Civil Code establishes the following: “He who by action or omission causes damage to another, intervening fault or negligence, is obliged to repair the damage caused.”

As we have mentioned, the way to repair the damage caused is usually the disbursement of money, but it can also end with a judicial confrontationTherefore, the company or the individual will need to have the support of a defense during the trial.

Advantages of having general liability insurance

These are the main advantages What will you get if you decide to take out a general civil liability policy:

• You will have covered all the damages and damages to involuntary third parties.
• You will have support against possible claims.
• Includes legal defense and criminal bonds.
• Some insurances offer healthcare.

The Markel insurance They are intended for both companies and individuals.

Conclution

Although we tend to think that in our case an accident will never occur that could lead to a controversial situation, the truth is that we are not safe from it.

With the hiring of an insurance of this type you will face unforeseen events that endanger your stability or that of your business.

Remember that civil liability is an aspect that is reflected in the law, so both individuals and companies should have this coverage through a policy. In this way, the appearance of unpleasant surprises will be avoided.