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Common general liability claims and how to avoid them

5 June 2024 Category: Business Insurance

Shield Your Business: 5 Common General Liability Claims and How to Prevent Them

Building a successful business requires dedication and hard work. One unexpected incident, however, can put all that effort at risk. General liability insurance is a crucial shield for businesses, protecting them from financial losses associated with claims of bodily injury or property damage to others. Let’s understand the top 5 common general liability claims and explore proactive steps you can take to prevent them.

  1. Slip & Fall Claims:These are some of the most frequent claims. A customer or visitor trips on a wet floor, spills a beverage, or encounters uneven flooring, leading to injury.Prevention Tips
    • Maintain a Clean and Safe Environment: Regularly mop spills, remove clutter from walkways, and ensure proper lighting throughout your premises.
    • Address Uneven Surfaces: Repair cracks, potholes, or loose carpeting promptly.
    • Post Warning Signs: Alert visitors to potential hazards like wet floors or recently cleaned areas.
    • Implement Winter Safety Measures: Clear snow and ice from walkways and parking lots when applicable.
    • Invest in Slip-Resistant Flooring: Use textured mats or floor coatings in high-traffic areas.
  2. Third-Party Property Damage Claims:Imagine a delivery driver accidentally nicks a customer’s mailbox while dropping off a package. This scenario falls under third-party property damage.Prevention Tips
    • Train Employees Properly: Equip staff with the knowledge and skills to handle equipment or products safely, minimizing the risk of accidental damage.
    • Maintain Your Equipment: Regularly inspect and maintain tools, machinery, and vehicles used for business operations.
    • Consider Delivery and Service Protocols: Develop clear guidelines for deliveries, installations, or repairs to reduce the chance of property damage.
  3. Personal & Advertising Injury Claims:These claims cover situations where your business actions damage someone’s reputation. For instance, accidentally publishing false information about a competitor in an advertisement could lead to a personal and advertising injury claim.Prevention Tips
    • Fact-Check All Marketing Materials: Double-check the accuracy of information before publishing it in advertisements, brochures, or online content.
    • Train Employees on Communication: Educate staff on responsible communication practices to avoid slander or libel.
    • Obtain Proper Permissions: Always secure the necessary authorization before using someone else’s image, name, or likeness in your marketing materials.
  4. Products-Completed Operations Claims:These claims arise when a product you sell or a service you provide causes injury or damage. Imagine a customer gets sick from using a faulty product you manufacture.Prevention Tips
    • Implement Quality Control Measures: Establish strong quality control procedures to ensure your products or services meet safety standards.
    • Maintain Product Liability Insurance: This specific insurance protects businesses from financial losses associated with product-related claims.
    • Provide Clear Warning Labels: Clearly communicate potential hazards or usage instructions on your products.
  5. Liquor Liability Claims:If you serve alcohol at your business, you’re exposed to specific risks. A customer who consumes alcohol on your premises and then injures themselves or others can lead to a liquor liability claim.Prevention Tips
    • Train Staff on Responsible Alcohol Service: Ensure employees are trained to identify intoxicated patrons and refuse service when necessary.
    • Maintain Clear Age Verification Procedures: Implement a system to confirm the legal drinking age of your customers.
    • Offer Non-Alcoholic Beverages: Provide a variety of non-alcoholic options on your menu.

Quick Settlement of General Liability Claims with Massive Insurance & Financial Services

At Massive Insurance & Financial Services, we offer comprehensive general liability insurance plans tailored to meet the specific needs of your business. Our experienced agents will work with you to assess potential risks and recommend the right coverage to shield your business. Contact us today to safeguard your business with comprehensive insurance solutions. Call us at (626) 598-3977 for further assistance.