Definition: General Insurance Liabilities Definition: A general insurance liability is a legal or contractual obligation to pay for an event, loss, damage, or injury that may result from an insured's peril, including but not limited to war, terrorism, earthquakes, floods, and hurricanes. The concept of general insurance liabilities is essential in the context of global business operations and contracts. Insurance companies provide coverage to ensure that their customers are protected against losses resulting from the risks they encounter. When a loss occurs due to an insured's peril or fault, the insurer will bear the cost of covering the costs of such occurrences. The primary types of general insurance liabilities include: 1.

Property Damage Liability

: This liability is triggered when there is damage to an insured's property caused by acts or omissions that the insurer has deemed negligent. 2.

Product Liability

: It covers claims for injuries resulting from products used in a business activity, such as automobiles and hazardous materials. 3.

Workers' Compensation

: Workers' compensation provides coverage to employees who are injured while on their job or under contract to work at an employer's premises. 4.

Product Liability Insurance

: This type of insurance is required by law for many types of products sold in the United States, including those that may be used or owned by a company. 5.

Medical Defense Insurance

: A liability policy can cover medical expenses for employees who are injured on-the-job or at work. In summary, general insurance liabilities form an important part of business operations and contracts, ensuring that businesses protect themselves against potential losses caused by risks they assume.

general insurance liabilities