What General Liability Insurance Covers (And Doesn’t Cover)
Numerous threats can harm a company’s financial health and reputation, from customer slip-and-fall accidents to product liability claims. As such, it’s imperative that business owners understand the ins and outs of general liability insurance, including what it covers and excludes. By familiarizing themselves with this coverage, business owners can better protect themselves, their assets, and their futures.
General Liability Insurance Explained
General liability coverage is a fundamental component of any comprehensive business insurance strategy. But what exactly is it, and why is it crucial for your business?
General liability provides businesses with financial protection against a range of common risks. These risks include accidents, injuries, and property damage that may occur during your business operations. Its purpose is to shield your business from the financial burden of legal claims and potential settlements resulting from such incidents.
The benefits of general liability protection are numerous. It provides peace of mind, safeguarding your business from unexpected expenses arising from accidents or injuries. This coverage helps to protect your company’s reputation and public image. In many cases, businesses must have general liability coverage before entering into a government or business contract.
Although general liability insurance covers a broad spectrum of risks, it’s not a one-size-fits-all solution. Businesses should combine it with other policies, such as property insurance and workers’ compensation, to create a safety net that addresses various aspects of their operation.
What Does General Liability Insurance Cover?
General liability encompasses several essential areas of protection.
Bodily Injury Coverage
If someone suffers an injury on your business premises, this coverage covers medical expenses, legal fees, and potential settlements.
Property Damage Coverage
Property damage coverage deals with damage caused to others’ property during your business operations.
Personal and Advertising Injury
This provision safeguards your business against claims of slander, libel, copyright infringement, or false advertising.
Legal Defense Costs
Legal proceedings can be costly, and legal defense costs can quickly add up. General liability covers your attorney fees, court costs, and any settlements or judgments arising from covered claims.
What’s Excluded From General Liability Coverage?
While general liability coverage provides extensive protection, it has limitations.
Professional Liability
General liability does not extend to professional mistakes or negligence. Businesses that offer professional services, such as doctors or lawyers, need separate professional liability insurance.
Employee Injuries
If an employee suffers an injury on the job, this falls under workers’ compensation insurance, not general liability. Your business should have separate coverage for employee injuries.
Intentional Acts
Acts of deliberate harm or wrongdoing are generally not covered. If you or your employees intentionally harm someone or their property, your policy won’t come to your rescue.
Property Damage to Your Business
Damage to your business property is typically not covered under general liability policies. For that, you would need commercial property insurance.
Businesses should seek professional guidance to ensure comprehensive general liability insurance protection. The Byrnes Agency has the experience to help businesses make informed decisions about their insurance needs and protection requirements.
About Byrnes Agency
At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.
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