Bodily injury

Most small businesses rely on multiple insurance policies that work together to protect them from bodily injury claims. Each policy covers injuries in different situations. Understanding how they overlap helps you avoid gaps in coverage.

• General liability insurance: This is the most common policy covering bodily injury for small businesses. It applies when a customer, vendor, or other third party is injured because of your business’s actions or conditions on your property.
• Workers' compensation insurance: Workers’ comp covers your employees’ injuries when they get hurt on the job. It pays for medical expenses, lost wages, and rehabilitation. If you have employees—even part-time or seasonal—most states require this coverage.
• Commercial auto insurance: Business vehicle policies provide bodily injury liability protection when your business vehicles cause an accident that injures another person. Each state sets minimum auto liability requirements, but many small business owners choose higher limits because medical and legal costs can escalate quickly.
• Commercial umbrella insurance: Umbrella insurance adds an extra layer of protection on top of your general liability, commercial auto, or employer’s liability (within a workers’ compensation policy). It kicks in when a claim exceeds the limits of your primary policy.

Each policy plays a specific role. If you misunderstand where one policy stops and another begins, you could unintentionally leave your business exposed.

Bodily injury liability coverage can help pay for:

• Medical bills, including hospital visits, surgery, medications, and physical therapy
• Lost income while the injured party recovers
• Long-term care or rehabilitation
• Funeral or burial expenses
• Pain and suffering
• Legal costs (e.g. attorney fees, court costs, settlements or judgments)
• Mental or emotional injuries, such as anxiety, shock, humiliation, or psychological distress resulting from a covered physical injury

Depending on your policy, a bodily injury might not be limited to just physical harm. Emotional or mental injuries caused by a covered incident may also be part of a claim.

Not all injuries are covered. Common exclusions include:

• Intentional acts or self-inflicted injuries
• Injuries resulting from illegal activities
• Preexisting conditions not caused by the incident
• Certain occupational illnesses (these may fall under workers’ compensation instead)

Always check your policy language, as coverage details and exclusions can vary by insurer and state.

Bodily injury claims can happen in many ways, including:

• A customer slipping on a wet floor in your store
• A tool dropped by an employee on a construction site injuring a bystander
• Food sold by your business causing an illness
• A client tripping over equipment during a photography shoot

These examples show why even small businesses need protection—any of these incidents could lead to expensive medical bills or legal action.

Reducing the risk of bodily injury not only protects your customers and employees, but can also help lower insurance costs:

• Post safety signage (e.g., “Wet Floor”)
• Maintain clear walkways and remove hazards
• Train employees on safe work practices
• Inspect equipment and facilities regularly
• Establish written safety procedures

If someone is injured on your business premises or by your operations:

• Ensure the injured party receives immediate medical care if needed
• Document the incident thoroughly (photos, witness statements, medical records, etc.)
• Notify your insurance company as soon as possible
• Keep all receipts, invoices, and communications related to the incident
• Cooperate with your insurer during the claims process
• Understand how legal defense and settlement costs are covered under your policy

Quick reporting and proper documentation can make a significant difference in how smoothly a claim is handled.