What would you do if somebody slipped and fell at your business? I’m hoping that you would simply be able to send a letter to your insurance agent and they would take care of it. That’s what liability insurance does, pays damages to people without regard to fault.

The problem is that law is vague, and justice is expensive. The solution right now is liability insurance. It’s pretty crazy to run a business without a CGL policy. (Commercial General Liability)

It will provide you with three lines of defense in case of an accident.

1. Medical Payments Coverage – Pays injured customer’s medical bills without regard to fault
2. Supplementary Payment – If you go to court, the insurance company chooses and pays the defense team.
3. Damages Payment – The insurance agent will pay damages to the injured party. This includes both judgments and cases that are settled out of court.

One good thing about your insurance company is that they are going to find and hire a really good legal team, because they are also responsible for the damages. Being as they are the ones who are paying the bills on it, it’s also there decision if they want to settle out of court.