Here are some key aspects to understand a general liability insurance policy.

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• Civil liability coverage: The general liability policy primarily covers the civil liability of an insured party. This includes bodily injury, property damage, and claims related to false advertising or defamation. If someone is injured or their property is damaged due to the business activities of the insured, this policy can help cover legal expenses and any compensation that may be owed.

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• Third parties: The general liability insurance covers third parties, that is, individuals or entities that are neither the insured nor affiliated with them. This can include customers, suppliers, visitors, or any other person who may be affected by the business operations of the insured.

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• Basic and supplementary coverage: The general liability policy offers basic coverage that protects against common claims, such as personal injuries and property damage. However, it is also possible to add supplementary coverages based on the specific needs of the insured. These additional coverages may include protection against claims of defamatory advertising, personal injuries due to defamation or invasion of privacy, medical expenses for minor injuries, and more.

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• Coverage limits: General liability policies have coverage limits, which are the maximum amount the insurer will pay in the event of a claim. These limits can be per claim (the maximum amount that will be paid for a single claim) or aggregate (the maximum amount that will be paid over a period of time, usually a year). It is important to select appropriate limits to ensure you are protected in the event of significant claims.

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• Costs: The cost of a general liability policy varies based on a number of factors, such as the industry in which the insured operates, the size of the business, annual revenue, claims history, and the selected coverage limits. Insurance premiums are paid periodically, typically annually or monthly, and the amount of the premium is based on the perceived risk.