What is covered by General Liability Insurance?

General liability insurance is a type of business insurance that helps protect a business from claims and lawsuits related to bodily injury, property damage, and personal or advertising injury. It also helps cover the legal costs associated with defending against such claims. The coverage includes the costs of the insured’s own legal defense, as well as any damages awarded by a court in the event of a successful claim against the insured.

Generally speaking, general liability insurance covers claims of bodily injury and property damage caused by the insured business’s products, services, operations, or employees. It may also cover claims of reputational harm, such as libel or slander.

The scope of coverage varies between policies, but some of the most common examples of what is covered by general liability insurance include:

Bodily Injury – Claims arising from injuries sustained by third parties while on the insured’s premises or while using the insured’s products.

Property Damage – Claims arising from damage to third-party property caused by the insured’s products, operations, or employees.

Personal Injury – Claims arising from libel, slander, or other defamation of character caused by the insured’s products, operations, or employees.

Advertising Injury – Claims arising from false advertising, unfair competition, or copyright infringement caused by the insured’s products, operations, or employees.

Medical Payments – Claims arising from medical expenses incurred by third parties injured by the insured’s products, operations, or employees.

General liability insurance does not provide coverage for every kind of claim. Some types of claims may require additional coverage, such as product liability insurance or professional liability insurance. Additionally, some states may require specific types and amounts of auto coverage for businesses that use vehicles for business purposes.

Overall, general liability insurance can help protect a business from the financial burden of expensive claims. By understanding the coverage provided by your policy and supplementing it with additional types of coverage, you can ensure that your business is adequately protected from unexpected risks.