Medical payments are a form of general liability coverage that provides reimbursement to third parties for medical or funeral expenses incurred due to bodily injury (BI) or death caused by an accident, as specified in the policy. This type of coverage is part C of the commercial general liability (CGL) insurance related to commercial insurance. An assessment by a liability insurer can help identify business practices that increase the chances of filing a liability claim. The components of liability coverage include premises and operations, products and operations completed, and personal injuries. Standard commercial general liability insurance offers protection against claims for bodily injury or property damage that your business may be liable for.
However, most insurance companies and business owners hope that the injured party will be content with simply having their medical bills paid. For instance, if one of your customers trips and falls in your retail store and breaks a bone, the compensation for that injury would be included in medical expense coverage. The part of the CGL that covers medical payments is not related to liability, so it is completely independent of any other legal obligations you may have. In the case of liability coverage, coverage for damages is provided to third parties, provided that the policyholder is legally obligated to pay. In commercial general liability insurance, two coverages are available: liability coverage and medical expense coverage.
Fire Damage Liability Limit The CGL Property Damage Exclusion, which eliminates coverage for damage to the property you rent, does not apply to damage caused by a fire. Similar to medical payments under a homeowners policy, this part of the CGL provides certain benefits to people injured on their premises or as a result of their daily business operations. The insurer settled the claim, which included both medical expenses and compensation, under liability coverage. Small businesses are more likely to have medical payment coverage than large “big” stores. On the other hand, medical expense coverage would provide coverage as soon as the accident or unfortunate event on the construction site occurs, regardless of whether the insured is liable for compensation or not. For businesses in certain industries, coverage is provided through a professional liability policy, which can be purchased separately. Medical payment in general liability insurance is an important form of protection for businesses.
It provides reimbursement for medical expenses incurred due to bodily injury or death caused by an accident. This type of coverage is part C of commercial general liability insurance and is completely independent from any other legal obligations you may have. It also provides benefits to people injured on your premises or as a result of your daily business operations. The CGL Property Damage Exclusion does not apply to damage caused by a fire and small businesses are more likely to have medical payment coverage than large “big” stores. Professional liability policies can also provide coverage for businesses in certain industries. It's important to understand what medical payment in general liability insurance covers and how it works so you can make sure your business is properly protected.
Knowing what type of coverage you need and how much it will cost can help you make an informed decision when purchasing insurance.