General Liability Business Insurance: Everything You Need to Know

As a business owner, you want to protect your business from any potential liability. General liability insurance is one of the most important types of insurance that you can purchase to protect your business. This type of insurance is designed to protect your business from financial loss in the event that you become legally liable for injuries or damages caused to others.

What is General Liability Insurance?

General liability insurance is a type of insurance that provides coverage for claims made against a business for injuries or damages caused to third parties. This type of insurance can cover a variety of different types of claims, including bodily injury, property damage, and personal injury.

Bodily injury claims are claims made against your business for injuries sustained by someone else on your business premises or as a result of your business operations. Property damage claims are claims made against your business for damage to someone else’s property that was caused by your business operations. Personal injury claims are claims made against your business for injuries that are not physical in nature, such as libel or slander.

General liability insurance can help protect your business from financial loss by covering the costs of legal fees, settlements, and judgments that you may have to pay as a result of a covered claim.

How Does General Liability Insurance Work?

General liability insurance works by providing coverage for claims made against your business for injuries or damages caused to third parties. When you purchase this type of insurance, you pay a premium to the insurance company in exchange for coverage.

If a covered claim is made against your business, you will need to notify your insurance company as soon as possible. The insurance company will then investigate the claim and determine whether or not it is covered under your policy.

If the claim is covered, your insurance company will provide you with a defense attorney to represent you in court. The insurance company will also pay for any settlements or judgments that you may have to pay as a result of the claim, up to the limits of your policy.

What Does General Liability Insurance Cover?

General liability insurance can cover a variety of different types of claims, including:

Type of Claim
Description
Bodily Injury
Claims made against your business for injuries sustained by someone else on your business premises or as a result of your business operations.
Property Damage
Claims made against your business for damage to someone else’s property that was caused by your business operations.
Personal Injury
Claims made against your business for injuries that are not physical in nature, such as libel or slander.

It’s important to note that general liability insurance does not cover every type of claim. For example, it does not cover claims made against your business for damage to your own property or for injuries sustained by one of your employees.

What is Not Covered by General Liability Insurance?

While general liability insurance can provide coverage for a variety of different types of claims, there are some things that it does not cover. Some examples of things that are not covered by general liability insurance include:

  • Claims made against your business for damage to your own property
  • Claims made against your business for injuries sustained by one of your employees
  • Claims made against your business for intentional acts, such as fraud or intentional harm
  • Claims made against your business for product liability

If you need coverage for any of these types of claims, you may need to purchase additional insurance policies.

How Much Does General Liability Insurance Cost?

The cost of general liability insurance can vary depending on a variety of different factors, including the size and type of your business, the nature of your operations, and the amount of coverage that you need.

When you purchase general liability insurance, you will typically pay a premium on an annual or monthly basis. The cost of your premium will depend on the level of risk that your business poses to the insurance company. If your business is considered to be high-risk, you may need to pay a higher premium to obtain coverage.

FAQs

What is the difference between general liability insurance and professional liability insurance?

General liability insurance provides coverage for claims made against your business for injuries or damages caused to third parties, while professional liability insurance provides coverage for claims made against your business for errors or omissions in your professional services.

Do I need general liability insurance?

If you own a business, it is highly recommended that you purchase general liability insurance to protect your business from potential liability.

How much coverage do I need?

The amount of coverage that you need will depend on the size and type of your business, as well as the level of risk that your business poses to the insurance company. It’s important to speak with an insurance professional to determine the appropriate amount of coverage for your business.

How do I purchase general liability insurance?

You can purchase general liability insurance through an insurance agent or broker, or you can purchase it online through a variety of different insurance companies.

What if I already have general liability insurance, but I need additional coverage?

If you already have general liability insurance but need additional coverage, you may be able to purchase an additional policy to provide the necessary coverage.

Conclusion

General liability insurance is an essential type of insurance for any business owner. It can provide coverage for a variety of different types of claims and can help protect your business from potential financial loss. If you own a business, it’s highly recommended that you speak with an insurance professional to determine the appropriate amount of coverage for your business.