Businesses within certain industries face numerous risks within their operations, so they prevent financial loss by getting insurance coverage. General liability insurance can help these businesses avoid losses from bodily injury or property damage claims. Many states may require businesses to have general liability coverage as a requirement before they start operations. Here’s what a general liability policy covers:
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Property Damage
Some business operations may involve working with equipment or amenities that can cause property damage. If you rent the business premises from a third-party individual, they may claim your business as liable in the event of such damage. General liability policies can cover rental property damage from fires or floods. Business operations like serving can damage your customers’ property, like phones or laptops. The general liability coverage can help protect your business from claims by handling repair or replacement costs, preventing financial loss for your business.
Bodily Injury
Business operations like serving or cleaning can cause accidents and sometimes result in bodily injury. Your business can be liable for customer injuries that occur within your premises. General liability insurance can help protect your business from claims of bodily injury from your products or services. This can cater to medical and rehabilitation expenses for injuries resulting from slips and falls or collisions in the course of normal business operations.
Advertising Liability
While marketing your business’s products or services, your advertisement can infringe on a competitor’s rights. Claims of copyright infringement or false advertising can be costly to your business. A general liability policy can help protect your business from such claims. Your insurer can also help you battle claims of potential copyright infringement in court, covering legal fees and punitive damages.
Reputational Risk
Your employees represent your business, so your business can be liable for any claims they make that can harm someone’s reputation. Reputational risk claims often involve non-physical harm or damage to a third party’s feelings or rights. Such claims can result in personal injury lawsuits like defamation and cause financial losses to your business.
Court Fees
As a business owner, you may experience personal injury cases when both parties fail to agree. Court cases can determine liability and necessary settlement depending on the case facts. Your general liability policy can cover the settlement amount, depending on the agreed-upon terms. The coverage can also settle other court fees you may incur within the personal injury case, like court rates and representation charges.
Medical Payments
Some personal injury cases may require your business to cover medical costs. General liability coverage can help settle medical payments for emergency room visits and hospital charges. In extreme injuries, the policy can also cover any follow-up medical expenses or rehabilitation charges. Medical payments can be determined by the court handling your personal injury case depending on the victim’s condition.
Liquor Liability
While establishments selling alcoholic drinks may need liquor liability insurance, some general liability policies have a basic liquor liability provision. The provision can cover businesses that sell alcohol on special occasions but is not part of their regular menu. If your business serves alcohol at catered parties hosted within your establishment, you may be responsible for the actions of your drunk guests. A general liability policy can help cover injuries from accidents like falls after becoming inebriated. This provision can often have limits, and the coverage may depend on the existing terms agreed upon between you and your insurer.
What General Liability Does Not Cover
General liability coverage can protect many aspects of your business, but some limitations and exclusions exist. You may need to purchase other types of insurance to cover such exclusions, depending on the nature of your business. Common liabilities that a general liability policy does not cover include:
- Inventory or personal product damage
- Employee illness or injuries
- Intentional acts of harm that you or your employees may engage in
- Environmental damage or pollution from your business
- Data breaches or cyber attacks
- Professional errors by your employees in the line of work
Get General Liability Insurance for Your Business
General liability insurance can help protect your business from common operational risks. This policy can cover third-party property damage, bodily injury, advertising injury, reputational risk, and medical expense claims. Adequate general liability coverage can help you avoid financial loss to your business.
