General liability insurance
General liability insurance
Who should consider obtaining general liability insurance?
, also referred to as “commercial liability insurance”, is a type of coverage that protects a business from claims resulting from bodily injury or property damage as a result of the business’ activities. It is a broad coverage with many different subsections, each one covering different aspects of risk. is a foundational form of insurance for most businesses. Knowing what it covers, who needs it, and how to buy it is important to success. In this article, we will discuss what general liability insurance is and what it covers, the types of businesses that need it, and some frequently asked questions.
What is general liability insurance?
is designed to protect a business from claims resulting from bodily injury or property damage that the business might be held responsible for. It can cover payment for the damage, legal costs, and the medical expenses of anyone injured.
can cover bodily injury or property damage caused by products, operations, or completed operations. Liability coverage can also extend to your employees, and is sometimes even referred to as employers liability insurance.
Who needs general liability insurance?
is not a requirement for all businesses. Some types of businesses, however, should definitely consider getting general liability insurance. These include:
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- Contractors – Those involved in the construction industry face a particular set of risks that make liability insurance critical.
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- Retail businesses – When interacting with customers, it’s important to be covered in the event of a claim.
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- Home-based businesses – Just because your business is run from home, it doesn’t mean you’re not at risk of legally liability.
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- Professional services – Whether you’re a lawyer, a doctor, or a consultant, professional liability insurance is essential for mitigating risk.
If you’re unsure whether or not your business is in need of general liability insurance, the best thing to do is contact an insurance professional for advice.
What does general liability insurance cover?
While general liability insurance can cover claims for bodily injury and property damage, there are further break-downs within this coverage. Examples of what general liability insurance may cover include:
Bodily Injury
If someone were to get hurt on your business’ property or as a result of your business activities, they may sue your business for the medical expenses. This is a situation where general liability insurance could provide coverage.
Property Damage
If your business was to damage someone else’s property, they may take you to court to recover the costs of repairing the damage. If you have general liability insurance, the costs of this claim will be covered.
Personal Injury
Personal injury covers claims resulting from libel or slander. This is an important aspect of general liability insurance in an increasingly digital world.
Advertising Injury
Claims resulting from copyright infringement, plagiarism, or other forms of intellectual property theft are covered under advertising injury.
Legal Defense Fees
If your business is involved in a suit regardless of the outcome, legal defense fees can be extremely expensive. can cover the cost of defending a claim in court.
Frequently Asked Questions about General Liability Insurance
Q: What is the difference between general liability insurance and professional liability insurance?
A: Professional liability insurance, sometimes called ‘errors and omissions insurance’ is specific to the professional services such as attorneys, doctors, or consultants. is applicable to a broader range of businesses.
Q: Does general liability insurance cover employee injuries?
A: Generally, general liability insurance does not cover employees at a business. For that, you need workers’ compensation insurance.
Conclusion
Gneral liability insurance provides a business with a valuable protection against certain types of claims resulting from bodily injury or property damage. It is a particularly essential form of coverage for certain industries such as contractors and retail businesses. No matter what kind of business you have, it’s important to understand what type of insurance coverage you need to best protect your business. For more information, contact a professional insurance broker.
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