What is Covered Under General Liability Insurance?

Many small business owners secure their enterprises with a general liability insurance coverage. Perhaps you are wondering, "What does general liability cover?" This insurance protects your firm against the following claims:

• Physical injury
• Property damage
• Personal damage, like libel or slander

What Incident Types Are Covered Under General Liability?

A general liability insurance coverage protects your small business against claims of bodily injury and property damage. These dangers can arise during routine corporate operations. Liability claims can be costly for small firms, and many lack the resources to pay for them.

Did you know that the average slip-and-fall claim costs $20,000?

• If you're facing a lawsuit for reputational harm, you should be prepared to pay approximately $50,000.
• Without general liability insurance, your business would be responsible for these expenses.

What Does a Standard Liability Insurance Policy Cover?

A general liability policy assists in covering disputes that may arise during typical business activities, including:

• Personal injuries your company may have caused. This includes consumer slip-and-fall incidents. General liability insurance might assist in covering their medical expenditures.
• Accidental property damage caused by employees, such as smashing a client's windows while working in their home. This insurance can assist cover the expense of window repair or replacement.
• Personal damage, like libel or slander. If your firm is sued, general liability coverage can assist pay for defense expenses.

What Does Small Business (GLI) General Liability Insurance Cover?

What exactly does general liability insurance cover? General liability insurance, often known as commercial general liability insurance or company liability insurance, provides coverage for the following:

• Expenses related to property damage claims against your company
• Medical expenses for employees injured on the job
• Administrative expenses for covered claims
• Court costs, judgements and settlements related to covered claims are covered.
• Your general liability insurance can assist with the payment of claims up to the limits of coverage.

What is Not Covered By General Liability Insurance?

Be mindful that general liability insurance does not cover all claims. For various risks, you will need several forms of coverage to protect your organization.

A standard liability insurance coverage will not assist your company with:

Accidents involving commercial vehicles that you or your employees cause while driving for work. A commercial auto insurance policy might assist in covering repair costs. If your small business does not have company-owned vehicles, hired and non-owned auto insurance may also be beneficial. Many states mandate specific types and amounts of motor insurance, such as bodily injury liability coverage and property damage liability coverage.

Work-related injuries and diseases affect employees. The benefits provided by workers' compensation insurance assist your employees in recovering from a work-related injury or sickness. For instance, it can assist in covering an employee's medical expenses and ongoing care costs.

Depending on your state, you can purchase general liability insurance from:

• Private insurance organization
• Governmental agency
• Monopolistic state fund
• Your own business property sustains damage. You will need commercial property insurance coverage to protect your owned or rented business property and equipment.

Errors or mistakes in the professional services provided to clients. If a client sues you for providing substandard services, professional liability insurance might help cover your legal expenses.

Claims that exceed your liability limits in terms of expense. For significant claims, you will require a commercial umbrella insurance policy. This increases the liability coverage limits of certain insurance policies.

Intentional acts of illegality or wrongdoing committed by you or your workers.