What is general liability insurance?
General liability insurance – or business liability insurance – is a type of property and casualty (P&C) insurance policy that protects businesses from financial losses due to third-party claims for bodily injury, property damage, and advertising injury. This page will explain what general liability insurance is, the different types of general liability insurance coverages available, and how the world of general liability insurance is changing.
The most common types of general liability insurance coverage include:
- Product liability insurance. This type of general liability insurance covers damages caused by the insured’s products or services, including bodily injury and property damage.
- Premises liability insurance. This type of general liability insurance covers damages that occur on the insured’s business premises, such as slip and fall accidents.
- Completed operations insurance. This type of general liability insurance covers damages that occur after the insured has completed a job or project, such as faulty workmanship.
- Advertising injury insurance. This type of general liability insurance covers damages caused by the insured’s advertising, such as trademark infringement or libel.
How is the world of general liability insurance changing?
The world of general liability insurance is evolving rapidly, with businesses facing new risks and challenges. Here are some ways the world of general liability insurance is changing:
- Increased demand. As businesses face new risks, the demand for general liability insurance is on the rise. Notably, however, it is common for general liability insurance policies to exclude cyber liability coverage, which many businesses opt to purchase separately.
- Digital technologies for managing claims. As businesses face increasing pressure to protect themselves from the risk of lawsuits, insurers face rising expectations for efficient, user-friendly, and consistent management of general liability claims. By using automated and intelligent technologies, insurers can streamline processes such as assigning claims to adjusters, evaluating comparable claims similarly, and providing omnichannel communication with insured customers.
How does Five Sigma help general liability insurance providers manage claims efficiently and reliably?
By streamlining claims management and empowering claims adjusters to optimize their job performance, Five Sigma helps general liability insurance providers to improve their profitability.
Our cloud-based, intelligent claims management solution is built from the ground up to simplify and enhance claims management. Using machine learning to analyze claims data, it provides just-in-time guidance to claims adjusters. Its embedded omnichannel communication module automatically documents both incoming and outgoing communications related to claims. And our technology is designed to integrate with existing claims systems, making it easy for insurance companies to adopt it.
All of that helps insurance companies to improve their claims processing times, reduce costs, and provide better customer service. By helping claims departments improve the accuracy and reliability of their claims management, we help them avoid excessive incurred losses. At the same time, our technology’s ability to help claims teams improve the speed and efficiency with which they process and close claims helps them to keep their loss adjustment expenses down.
Taken together, those benefits can make a big difference for general liability insurance carriers – especially given the critical role that claims adjusters play in shaping their employers’ overall profitability.Back to Glossary