What is General Liability Insurance and What Does It Cover?

It is very common for small business owners to carry general liability insurance to protect their business. A standard general liability insurance policy will cover bodily injury, advertising injury, property damage, reputational harm, and copyright infringement. 

Typically liability claims are fairly common and usually come up during normal business hours. If a small business does not have the resources to cover a liability claim, it can get very expensive if you’re not covered. 

For example, the typical cost of a slip and fall claim can run around $20,000. In addition, a normal reputational harm lawsuit can run around $50,000. If you’re not covered with a good general liability insurance policy there is a good chance you will have to pay these fees out of pocket. 

What types of claims does a general liability insurance policy cover? 

Bodily injury and property damage. If a customer slips at your place of business, this portion of the policy will cover you. It can also protect you for employee accidents. For example is an employee breaks something at a clients home the property damage portion of the policy may cover you. 

Advertising injury. If your business defames another company the advertising injury portion of your policy may cover you. 

Reputational harm. If you frequently do interviews as a business owner you may say something regarding a competitor that negatively effects their business and the reputational harm part of your policy may cover you for these situations. 

Copyright infringement. You might at some point use music or some other form of content with a copyright for your businesses advertising unknowingly. The copyright infringement portion of your policy may cover you. 

What will a general liability insurance policy cover for my business?

General liability insurance, which is often referred to as business liability insurance, or commercial liability insurance will help you to cover your business for;

• Property damage costs that result in a claim against your business. 

• If someone gets hurt or injured on your property your general liability policy can cover you for medical expenses that may be a result of the injury suffered on your property. 

• Advertising injury claims against your company.

• Administrative costs to handle covered claims.

• Legal fees, court costs, judgments, and settlements for covered claims. 

Please keep in mind your general liability insurance policy will only cover you for up to your personal policy limits. Always make sure you’re covered with an adequate amount of insurance so that your company is fully protected. 

What is not covered under a general liability insurance policy?

A general liability policy will not cover all aspects of your business. If you’re looking to protect everything you will need additional insurance to cover it. 

What doesn’t general liability insurance cover;

Commercial auto accidents that your employees or yourself may cause while driving for business. If you want full coverage for your companies vehicles, it may be a good idea to look into a good commercial auto insurance policy. 

If an employees becomes ill or injured due to their work, you may not be covered. To be fully covered for this aspect of your business, it may be a great idea to look into a workers compensation policy. 

If your businesses property is damaged, general liability more than likely will not cover your business. Coverage for your property can be protected with a commercial property insurance policy. 

If you’re looking for great coverage from a reputable insurance broker, give us a call. At Beacon Business Insurance we specialize in getting our clients the very best commercial insurance for their company! Call us today at 916 273-8391