If someone is injured by you or at your business site, the policy may pay for medical and funeral expenses incurred, up to policy limits, within one year of the accident. An example of this is if a customer tripped and fell on your premises and had to be hospitalized.
A Commercial General Liability Policy won’t cover every potential risk, so specialty insurance may be needed depending on your company’s needs.
Employment practices liability coverage protects an employer against an employee’s claims of alleged wrongful acts arising from the employment process. The purpose of this insurance is to protect the corporation, directors, officers and employees from alleged employment-related wrongful acts. Some features to having this policy are coverage for front/back pay, attorneys’ fees and compensatory damages, for punitive damages where insurable by law, for actual or alleged retaliatory treatment, varying retention’s for class action suits or other claims, for emotional distress or mental anguish, no purposeful or intentional acts exclusion or reductions in force or mass layoffs exclusion. Understand that coverage varies from company to company.
Directors and Officers Liability coverage protects executives against claims alleging negligence, errors and omissions, misstatements, misleading statements and misrepresentations. Most organizations have a general liability policy that protects its directors and officers against negligent acts that result in bodily injury or property damage. However, general liability does not protect against alleged wrongful acts or omissions, including breach of duty, which do not result in bodily injury. Directors and Officers coverage protects your executives from potential lawsuits resulting from key decisions or management practices-lawsuits that may target their personal assets.