No matter how many precautions businesses take, accidents can still happen. What happens if one of those service accidents damages a customer's personal property?
The business may need to compensate clients for lost or damaged property. Following such losses, the business might be able use their general liability insurance policy to recover some of those costs.
General Liability Insurance and Property Damage
Let's say a customer drops off their clothing at a dry cleaning business. A cleaning issue might damages the clothing. This amounts to property and monetary losses to the customer. This costly property damage may mean that the business has to pay the customer for these damages.
General liability insurance often contains a degree of property damage coverage. If the business damages someone's property, it might be able to claim replacement costs from its insurer and use this money to compensate the client affected. In this case, the client might be able to use the insurance money to buy new clothing. Also, if the client sues, the liability coverage might help cover the business' legal costs.
Variations in Property Damage Coverage
Property damage coverage is often not a one-size fits all policy. Businesses may conduct operations using various machinery and products. They may also work off the premises of their main property. It is imperative that property damage coverage follows a business wherever it goes.
- Premises Coverage may protect a business from property damage that occurs on its own property.
- Off-Site Coverage may apply when property damages occurs off the business' premises. For example, it may help should damage occur when the dry cleaner delivers orders.
- Completed Operations/Product Coverage might help the business if its products cause damage for a customer. For example, failing to remove chemicals from dry cleaned clothing may result in the client getting burned when they wear it. This coverage come into play in this situation.
Expanding Your Personal Property Coverage
A property damage liability policy may not cover every risk a business faces. Dollar limits and exclusions may restrict how the coverage applies to certain types of property damage. At times, a general liability policyholder may want to consider additional coverage.
- Umbrella coverage can expand the coverage limits of a general liability policy. It may also offer coverage for certain hazards excluded from standard coverage.
- Commercial auto liability insurance can help a business when its vehicles damage someone else's property.
As a business, you should do everything you can to avoid damaging a client's property. But when the unavoidable happens, your general liability insurance may be able to help. Talk to your insurance agent about which types of general liability property coverage you need.
Get covered today! Call Atlantis Insurance at (305) 392-1381 for a free Miami general liability insurance quote.