General liability insurance is one of the most fundamental coverages a business can carry. It is designed to help protect your business from some of the most common claims that arise in the course of everyday operations.
What General Liability Typically Covers
A general liability policy is generally intended to respond to third-party claims of bodily injury, property damage, and certain advertising or personal injuries that occur in connection with your business.
For example, if a customer slips and is injured while visiting your place of business, or if your operations accidentally damage someone else’s property, general liability coverage may help respond to the resulting claim.
- Third-party bodily injury claims
- Third-party property damage claims
- Personal and advertising injury (such as libel or slander allegations)
- Legal defense costs associated with covered claims
Why It Matters
Even a single liability claim can be disruptive and costly for a small business. Legal defense costs alone can add up quickly, regardless of whether a claim ultimately has merit.
Many commercial leases and client contracts also require businesses to carry general liability insurance, making it a practical necessity for doing business with certain landlords and customers.
What It Generally Does Not Cover
General liability is broad, but it is not all-encompassing. It typically does not cover professional mistakes, employee injuries, damage to your own property, or automobile-related liability — each of which is usually addressed through separate coverages such as professional liability, workers compensation, commercial property, or commercial auto.
Key Takeaways
- General liability helps protect against common third-party injury and property damage claims.
- It often includes legal defense costs for covered claims.
- It is frequently required by leases and client contracts.
- It works alongside other policies rather than replacing them.
This article is provided for general educational purposes only and does not constitute insurance advice or a recommendation. Coverage is subject to the terms, conditions, exclusions, underwriting requirements, carrier eligibility and state availability of each policy. Please talk with us about your specific situation.
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