General Liability Insurance

Many businesses across different industries are exposed to a variety of common risks. General liability insurance is a broad liability insurance policy that safeguards businesses from several risks at once. Broadly speaking, policies offer protection from claims and lawsuits filed by third parties over covered incidents.

Because general liability coverage provides broad protections against a variety of risks that many businesses are exposed to, most businesses can benefit from having a general liability policy. Hair salons, real estate brokerages, cafes, and home builders are vastly different businesses – but they all should consider general liability protection. Some businesses may even need a general liability policy in order to secure contracts. Municipalities and large companies frequently only work with insured contractors and vendors.

While exact protections can vary from policy to policy, there are a few coverages that most general liability policies provide, such as: bodily injury coverage, which may help protect a business if someone is injured on company property; property damage coverage, which might help protect a business if the business is held responsible for damaging a person's or another organization’s property; and personal advertising injury coverage, which may help protect a business if it’s accused of slander, libel, or false advertising. Some general liability policies include additional protections, such as liquor liability coverage or product liability coverage.

General liability coverage is primarily designed to protect against lawsuits and claims filed by third parties. Third parties are normally people and organizations that aren’t directly connected with a business. They may be competitors, vendors, customers, or other people or organizations. Owners and employees usually aren’t considered third parties. Therefore, claims filed by them usually aren’t covered by general liability coverage. These claims may be covered by another insurance policy, depending on the specifics of a claim and policies that a business has.

General liability policies shouldn’t be confused with professional liability policies. Professional liability policies normally provide coverage for mistakes related to a professional’s work. For example, a policy might cover a mathematical error than an accountant makes or poor advice that an investment advisor offers. These policies usually don’t offer bodily injury, property damage, or false advertising liability coverage, though. Therefore, most professionals should have a general liability policy in addition to any professional liability insurance they carry. The coverages that a general liability provides offer complementary, rather than overlapping, protection.