Friday, June 22, 2012

Business Insurance Quote - Difference Between Legal Liability and General Liability

A business insurance quote can be the first step in putting together commercial general liability insurance to protect you from negligence claims and or acts. Please note that typically all insurance policies normally do not provide coverage for criminal violations.

There are four elements that form the basis of every negligent act. All four elements must be present in order for there to be a negligent act.

To briefly lay out the four elements it looks something like this. There must be a breach of a duty that was owed to someone that causes damages. In looking at this negligent acts description one can quickly see some of the defenses that are available to you as a small business owner.

If there are no damages then there is no negligence. If you back into another car in a parking lot and there are no damages there is no negligence. Using the same car example if you are in your car you do not have a duty to pay pain and suffering damages when there is no physical evidence of any damages to the person and/or the property.

Again using the parking lot example, if you were to park extremely close to another vehicle as long as you have not violated some local ordinance or law you cannot be held negligent simply for inconveniencing someone in a tight parking space.

Even though sometimes the four elements of the negligent act are not present that does not prevent somebody from filing a lawsuit. Therefore, it would be prudent to have the proper commercial general liability insurance in place for these types of frivolous lawsuits that should eventually be dismissed because the negligent elements have not been met.

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