General Liability
Risk Management
Our team of experts is dedicated to providing you with a comprehensive assessment of your risks and quote comparison from our broad network of insurers while ensuring that you have the essential knowledge to make informed decisions on General Liability insurance.
The Basics of General Liability Insurance
General liability insurance helps provide financial protection against third-party liability claims arising from your business operations. This coverage protects your business from a wide range of potential risks, including property damage, personal injury, and third-party claims. Most general liability policies will cover the costs of legal defense and damages awarded to the plaintiff. Many businesses are required to carry general liability insurance to protect customers and employees.
General liability insurance is typically a cost-effective way to protect a business from liability claims and is essential for companies of all sizes. While the exact coverage will vary depending on the policy, it is important to note that general liability insurance does not cover professional errors or negligence. You must purchase a separate professional liability insurance policy to obtain coverage for these risks.
Key Coverage Provisions
While coverage varies by carrier, a typical general liability insurance policy can protect your company from various claims. It’s essential to understand what your general liability insurance policy covers to help ensure your business is adequately protected. A typical general liability insurance policy can help protect against risks such as:
Third-party property damage and bodily injury
Third-party property damage and bodily injury is the most common liability claim filed against businesses. This coverage helps cover medical expenses, lawsuits, and settlements that may arise from accidents or injuries for which your business is found liable. It can also help pay for the repair or replacement of damaged property.
Product liability
This coverage protects you if you sell a product that causes injuries or property damages. Product liability coverage can also help pay for legal fees and damages if you are sued.
Personal and advertising injuries
This insurance coverage can help financially protect your business if you are accused of libel, slander, or false advertising. Personal and advertising injuries coverage can also help pay for legal fees if you are sued.
What’s Typically Not Covered?
Many businesses purchase a general liability insurance policy to help protect them from a variety of potential risks. However, it is crucial to understand that a general liability policy has its limits, and certain types of risks are typically excluded, such as:
Professional errors
Many general liability policies exclude coverage for professional services. This means that if you’re a doctor, lawyer, accountant, or other professional, your policy may not provide coverage for any claims arising from your services. Instead, you will need a professional liability policy (E&O Insurance).
Employee injuries
Workers’ compensation claims are not typically covered under general liability policies. If an employee is injured at work, they’ll likely need to file a workers’ compensation claim instead.
Vehicles
General liability policies exclude coverage for business vehicles. Instead, a commercial auto insurance policy will help provide coverage for any business-owned or leased vehicles.
Liquor liability
General liability policies also typically exclude coverage for Liquor liability claims. You may not be protected from claims due to a customer being served alcohol.
Employee discrimination lawsuits
General liability insurance does not cover your business from financial losses caused by employee discrimination lawsuits. It is essential to ensure that you have sufficient employment practices and liability insurance coverage limits if you are an employer.
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