General liability insurance safeguards you and your company against “general” claims involving physical harm and property damage. This is required by almost every business.
General Liability Insurance
It is recommended that all firms carry this type of insurance. It protects you from any damages, losses, and penalties.
What is General Liability Insurance?
This is a must-have for business owners. It could be called the ‘backbone’ of business. (GLI) can assist in covering allegations that your company caused physical harm or property damage. This is sometimes referred to as commercial general liability insurance (CGL). GLI is available as standalone insurance or as part of a business owner’s policy (BOP) that includes other important coverages.
What General Liability Insurance covers
It provides coverage for common liability claims from third parties (people outside your business). This business insurance policy covers legal defense costs if someone sues over a bodily injury, property damage, or advertising injury. Your policy can pay for everything from hiring a lawyer to court-ordered judgments and settlements.
- Bodily harm to a third party
If a customer is injured in an accident at your place of business, it can help cover medical costs. It also covers legal fees if a consumer sues because of the injury.
- Product responsibility
Not all property damage or client injuries occur within the confines of a store. If a company manufactures, distributes, or sells goods, it might be sued for the damage such goods cause to people or property.
This is typically included in commercial general liability (CGL) plans. This coverage assists in the payment of litigation and other financial damages resulting from defective products, labeling errors that affect customers, and other product hazards.
- Personal injuries and commercial injuries
If a business owner or employee is sued for defamation, libel, false arrest, or copyright infringement, it can help cover legal fees as well as any settlement or verdict.
- Property damage caused by a third party
This policy might cover costs if your company inadvertently damages or destroys someone else’s property.
Things that General Liability Insurance Does Not Cover
- Employee injuries
- Auto accidents,
- Punitive damages
- Workmanship
- Intentional acts
- Professional mistakes
Factors that can affect the cost of GLI
Factors that affect the cost include:
- Your prior claim history
- Your type of work
- Years of experience
- Where you operate your business
Companies that offer General Liability Insurance
Companies include
- CHUBB
- The Hartford
- Progressive
- Thimble
- Nationwide
- State farm
- Next Insurance
- Trivly
- Hiscox
- Acuity
- BiBerk
A general liability insurance policy, often known as business liability insurance, protects companies against claims arising from typical company operations. Get a company liability insurance policy to protect yourself from personal harm, medical bills, and advertising injuries, among other things.
FAQs
What exactly does general liability coverage cover?
Its policies often cover you and your business for bodily injury and property damage claims arising from your products, services, or operations. It may also protect you if you are held liable for your landlord’s property damage.
What is the distinction between commercial liability insurance and general liability insurance?
This protects against physical hazards such as bodily harm and property damage. Professional liability insurance protects you against more abstract hazards, such as errors and omissions in the services you perform.
What does general liability insurance look like?
Physical injuries that your company may have caused. Customer slips and falls are examples of this. It might assist in covering their medical expenses. Property damage caused by employee errors, such as smashing a client’s windows while working at their home,
Do I require both general and professional liability insurance?
If you face both types of hazards, you will require both types of insurance. Furthermore, as a condition of your contract, an employer or client may demand that you carry professional liability, general liability, or both.
Is general liability the same for business owners?
A business owner’s policy (BOP) is similar to a general liability insurance policy with additional property protection. It combines many insurance plans into a single, low-cost package. A BOP is often accompanied by GLI.
What does commercial general liability insurance not cover?
Commercial general liability coverage may cover the cost of any incidental damages caused by the company’s operations as well as the legal fees associated with defending a lawsuit. It does not cover willful damages or accidents involving cars, airplanes, or boats.
Is professional liability covered by an umbrella policy?
Umbrella insurance can cover professional liability and is quickly becoming one of the most popular types of insurance among professionals. Psychologists, financial planners, and investors are just a few of the occupations that benefit from this strategy.
