Public Events, Personal Responsibility 

Why is General Liability Insurance so Important? 

Whether you are a business owner or a in independent contractor, general liability insurance is necessary to protect your financial assets. This insurance is used in the event that an injury to a third party or their property happens, even if it you are not explicitly at fault. If you are hosting or organizing a public even, large or small, it is necessary to carry the full amount of insurance possible as all it takes is a single slip or fall to incur millions in damages, penalties and fines.

What General Liability Insurance Covers 

General Liability Insurance covers most accident claims but cannot cover the following:

Employee claims

Employer’s Liability Insurance is required for injuries and property damage suffered by your employees, contractors or anyone who is under your direct employ or acting as an agent on your behalf.

Deliberate Negligence

Negligence is a term used legally to denote that the insured (you) ignored or did not follow a safety regulation or concern. An example of this would be if someone fell from a balcony and there was a broken rail that you or one of your employees knew about and did not fix.

Examples of General Liability Claims

Here are a few examples to show how public liability claims work:

  • A self-employed plumber visits a client’s home to repair a garbage disposal. During installation, he accidentally spills a bottle of adhesive on the floor and cabinets, causing extensive damage. Not only does the floor and cabinet need repaired, but the client could claim emotional damage and lost wages if the kitchen were used as a source of income.
  • You own a small food truck park. The floors have been recently swept, but a small bit of trash is on the ground. Someone slips and breaks their arm.
  • You are running a convention for a group of professionals. During the convention, several attendees get ill after eating food that you provided without a caterer.

The need for liability insurance is high for any business you may own, but is especially important for a business that runs personal and public events, or other high risk operations such as day care, construction or home repair and conventions. Some businesses are legally required to care such insurance. For more information please look at the Oklahoma Insurance Department’s FAQ on insurance.