General liability insurance can help protect a business from certain covered third-party claims involving bodily injury, property damage and other specified liability exposures.
For many companies, it is a foundational part of a commercial insurance program.
One Accident Can Become a Business Problem Very Quickly.
A customer slips at your location.
Your operations damage someone else's property.
A covered allegation leads to a lawsuit.
Legal defense and liability claims can become expensive even for financially healthy businesses.
That's the type of exposure general liability insurance is designed to address, subject to the policy's terms, limits and exclusions.
What Can General Liability Insurance Cover?
Depending on the policy, general liability can address qualifying claims involving:
- Third-party bodily injury.
- Third-party property damage.
- Certain personal or advertising injuries.
- Associated legal defense for covered claims.
Actual coverage depends on the policy.
Who May Need General Liability Insurance?
Many types of businesses should at least evaluate it.
Contractors.
Retailers.
Restaurants.
Property owners.
Service businesses.
Office-based companies.
And many others.
Customers, landlords, or contracts may also require evidence of particular liability limits.
What Doesn't General Liability Insurance Cover?
A general liability policy isn't designed to solve every business exposure.
Separate coverage may be required for employee injuries, commercial vehicles, professional errors, cyber events, or damage to your own property.
That is why business insurance should be reviewed as a program rather than as a collection of isolated policies.
General Liability vs. Professional Liability
They address different kinds of risk.
General liability generally focuses on specified bodily injury, property damage, and related liability exposures.
Professional liability generally addresses qualifying claims arising from professional services, errors or omissions.
Some businesses need both.