General Liability

General liability insurance is a common type of business insurance that helps protect a business from financial losses resulting from certain third-party claims. These claims can include bodily injuries, property damage, and personal or advertising injuries that occur as a result of normal business operations.

Whether you operate from a physical location, work at customer job sites, or regularly interact with clients and the public, general liability insurance can help protect your business from the financial impact of accidents and lawsuits.

What Does General Liability Insurance Cover?

General liability insurance typically provides coverage for several common risks businesses face.

Bodily Injury

If a customer, visitor, or other third party is injured as a result of your business operations, general liability insurance may help cover medical expenses, legal costs, and damages associated with the claim.

For example, if a customer slips and falls at your business location, your general liability policy may help cover costs related to the resulting injury.

Property Damage

General liability insurance can help protect your business if you or your employees accidentally damage someone else's property while performing business activities.

For example, if a contractor accidentally damages a customer's property while completing a job, the contractor's general liability policy may help cover the cost of the damage.

Personal and Advertising Injury

General liability policies may also provide protection against certain claims involving personal or advertising injuries. Depending on the policy, this can include claims involving libel, slander, copyright infringement in advertising, or certain violations of privacy.

Legal Defense Costs

Lawsuits can be expensive even when a business is ultimately found not to be responsible. General liability insurance may help pay for attorney fees, court costs, settlements, and judgments associated with covered claims.

What General Liability Insurance Does Not Cover

General liability insurance provides broad protection, but it does not cover every risk a business may face. Businesses may need additional insurance policies for exposures such as:

• Employee injuries and illnesses
• Damage to business-owned property
• Professional errors or negligence
• Business-owned vehicles
• Cybersecurity incidents and data breaches
• Intentional or illegal acts

Coverage varies by policy and insurer, so businesses should review their policy terms, limits, exclusions, and deductibles carefully.

Who Needs General Liability Insurance?

General liability insurance can be useful for businesses of many sizes and industries, particularly businesses that work with customers, operate at third-party locations, rent commercial space, or perform work where an accident could cause injury or property damage.

Some clients, landlords, licensing authorities, and contracts may also require a business to maintain general liability insurance before work can begin.

How Much General Liability Coverage Do You Need?

The appropriate amount of coverage depends on factors such as the type of work your business performs, the size of the business, where work is performed, contractual requirements, and the level of risk associated with your operations.

Reviewing these risks with a licensed insurance professional can help you determine the coverage limits and insurance policies that are appropriate for your business.