What Does General Liability Insurance Cover?
General Liability Insurance can cover the expenses related to non-employee injuries that happen on your property, damage you cause to someone's property, and advertising mistakes. In other words, it can cover some of the common lawsuits that arise from everyday business activities, such as renting property, working with clients, and interacting with customers.
If your business is sued and the lawsuit is covered by your General Liability policy, the insurance company can help pay for legal expenses, including attorney's fees and settlements.
Keep reading for specific examples of what General Liability Insurance can and can't cover.
So, What Does Business Liability Insurance Cover Exactly?
Let's start with some clarification. General Liability Insurance is just one kind business liability insurance. But it is an important one. It takes care of what’s known as “third-party lawsuits,” meaning lawsuits brought by anyone who isn’t employed by your business: vendors, customers, your landlord, etc.
But General Liability Insurance only covers certain third-party lawsuits, including those triggered by the following events:
- Bodily injury / accidents on your property. Example: a client sues you after slipping and falling at your office and breaking their leg.
- Property damage. Example: your landlord sues you when a fire at your office destroys part of the building.
- Copyright infringement. Example: a competitor sues you, claiming your advertising and marketing materials look too similar to theirs.
- Reputation damage. Example: after you post some pretty harsh comments on social media about a competitor, it sues you for the harm you caused to its reputation. Learn more about that in our eBook Tweet or Twibel: The Small-Business Owner's Guide to Advertising Injury.
If you look around your workplace while channeling your inner Stephen King, you can imagine plenty of terrifying scenarios involving accidents, property damage, or other misfortunes.
Telekinetic teens or killer clowns probably won't besiege you, but what about that loose bit of carpet? That could cause a $100,000 bodily injury lawsuit if a deliveryman trips over it and injures himself. That crowded electrical socket? A $250,000 property damage lawsuit if it causes a fire in your landlord’s building.
Fortunately, General Liability Insurance has you covered when the unexpected strikes.
What Doesn't Commercial General Liability Insurance Cover?
As we already mentioned, General Liability Insurance benefits can only pay for certain lawsuits.
Here are some of the major expenses and liabilities your General Liability Insurance won't cover:
If you’d like to know more about what General Liability doesn't cover, check out "5 Things General Liability Insurance Doesn’t Cover."
Where Do I Find Out More about General Liability Insurance Coverage?
For industry-specific information, click the "Who We Insure" tab at the top of the page. You'll discover how General Liability Insurance applies to different lines of work, including marketing, general contracting, tech, and more.