What does general liability insurance cover? General liability insurance is one of the most important insurance policies most businesses can obtain. Whether you’re a sole proprietor or run a large business with dozens, hundreds or even thousands of employees, general liability insurance will protect you against two main exposures: Third party bodily injury and third party property damage.
So, what does that mean? Basically, if you interact with customers or customers come to your place of business, general liability insurance will protect you against most damages or injuries those customers may incur.
General liability insurance covers specific damages resulting from incomplete or underperformed work, employee dishonesty, data breaches, workplace accidents, and damage to your or your customers’ property. However, it does not cover intentional malicious acts committed by you or your employees.
So, what does general liability insurance cover? Here are a few things:
Third Party Bodily Injury
It is possible for customers, vendors or other visitors to get injured on your business property. In such instances, your business would be held responsible. If, for example, a delivery man slips on loose carpet and breaks his arm, your business may be responsible for medical bills and other related damages. That person may also choose to sue you and your business. General Liability insurance would help cover any legal fees. With the right general liability insurance policy, your business and your livelihood will not be greatly impacted by injury, theft, or damage caused to another individual or business. It is important to note that employee injuries are covered by workers compensation insurance, not a general liability policy.
Third Party Property Damage
If you or your business employees cause damage to the property of a third party, they may file for a property damage claim. Examples of such instances would be if you accidentally damage the windows of the neighboring business while operating your business equipment or if one of your employees damages a customer’s vehicle while loading merchandise. They may make a property damage claim against your business. Your general liability insurance will help you settle the claim.
Some general liability policies will also cover:
Harm to Reputation
It is not always possible to regulate what you and your employees say, especially about competitors. If, for example, you go on an interview and end up saying things about a competing business that may appear injurious to their reputation, they could sue you. They may make a claim for slander or libel. Your general liability insurance coverage may help you settle such claims. It would help your business pay for witness fees, legal representation, settlement, and even costs of evidence. However, you should note that many general liability insurance policies exclude this coverage, especially for higher-risk businesses.
If the advertising practices of your business are found to be an imitation of another business’s advertisement or injurious to their reputation, your business could be subject to legal action. If you have general liability insurance, your business may not have to incur crippling expenses when setting the claim. The insurance coverage may help to pay for any costs that may come with the claim.
It is important to note that general liability insurance will not compensate you for injuries at the workplace if they occur to your employees. It only covers damage or injury to third parties. It is, however, a very important coverage especially because almost all businesses are faced with a claim at some point.
At Brashears Insurance, our goal is to meet and exceed your needs. We write policies that address the specific needs of our clients because we believe that every situation is different and it deserves unique coverage. If you’re wondering, “what does general liability insurance cover,” contact us now at (805)564-7645.