What General Liability Insurance Covers: The Ultimate Guide

What General Liability Insurance Covers – General Liability Insurance is a crucial aspect of any business, whether big or small. It protects your company from financial losses that may arise from lawsuits or claims filed against you for property damage, bodily injury, or advertising injury. However, understanding what General Liability Insurance covers can be challenging, and the consequences of not having adequate coverage can be detrimental to your business. That’s why we’ve put together the ultimate guide to help you navigate through the complex world of General Liability Insurance. In this guide, we’ll break down the coverage, exclusions, and limits of General Liability Insurance, providing you with a comprehensive understanding of what it entails. We’ll also discuss how to determine the right coverage for your business, what to look for in a policy, and how to file a claim. So, whether you’re a business owner or an entrepreneur looking to start a new venture, this guide is a must-read to ensure that your business is adequately protected. Click here for a quote on General Liability Insurance for your business.

What General Liability Insurance Covers

General Liability Insurance covers a variety of incidents that can occur within your business. These incidents include bodily injury, property damage, and advertising injury. Here’s a closer look at what each of these incidents entails:

Coverage for Bodily Injury and Property Damage

Bodily injury refers to any injury that someone sustains while on your property or due to your business activities. Property damage refers to any damage that occurs to someone’s property while on your property or due to your business activities. General Liability Insurance covers the cost of medical bills and repair or replacement costs for property damage.
For example, if a customer slips and falls in your store, GL Insurance will cover their medical bills and any other costs related to their injury. If a contractor accidentally damages a customer’s property while working on their home, General Liability Insurance will cover the repair or replacement costs.

Coverage for Product Liability

Product liability refers to any injuries or damages that result from a product that you manufacture or sell. General Liability Insurance covers the cost of medical bills and repair or replacement costs for property damage caused by your product.
For example, if a customer purchases a defective product from your store and is injured as a result, General Liability Insurance will cover their medical bills and any other costs related to their injury. If a defective product causes damage to a customer’s property, General Liability Insurance will cover the repair or replacement costs.

Coverage for Advertising Injury

Advertising injury refers to any injury or damages that result from your advertising activities, such as copyright infringement or defamation. General Liability Insurance covers the cost of legal fees and damages awarded in a lawsuit related to advertising injury.
For example, if you use a copyrighted image in your advertising without permission and are sued by the copyright owner, General Liability Insurance will cover the cost of legal fees and any damages awarded in the lawsuit.

Coverage for Personal and Advertising Injury

Personal and advertising injury refers to any injury or damages that result from your business’s activities, such as slander, libel, or invasion of privacy. General Liability Insurance covers the cost of legal fees and damages awarded in a lawsuit related to personal and advertising injury.
For example, if a customer sues your business for slander, General Liability Insurance will cover the cost of legal fees and any damages awarded in the lawsuit.

Coverage for Medical Expenses

General Liability Insurance also covers the cost of medical expenses for injuries that occur on your business’s premises or as a result of your business activities.
For example, if a customer is injured while on your property and requires medical attention, GL Insurance will cover their medical bills.

Exclusions to General Liability Insurance

While General Liability Insurance covers a broad range of incidents, there are some exclusions to the coverage. These exclusions include intentional acts, employee injuries, and professional services.
Intentional acts refer to any injury or damage that was caused intentionally by you or your employees. General Liability Insurance does not cover intentional acts.
Employee injuries are not covered by GL Insurance. If an employee is injured while on the job, Workers’ Compensation Insurance will cover their medical bills and lost wages.
Professional services, such as accounting or legal advice, are not covered by General Liability Insurance. If a customer sues your business for professional negligence, you will need Professional Liability Insurance to cover the cost of legal fees and damages awarded in the lawsuit.

How to Choose the Right General Liability Insurance Policy

Choosing the right General Liability Insurance policy can be challenging, but there are a few factors to consider that can help you make the right choice. These factors include coverage limits, deductibles, and endorsements.
Coverage limits refer to the maximum amount that your insurance company will pay out for a claim. It’s essential to select coverage limits that are adequate for your business’s needs.
Deductibles refer to the amount that you will pay out of pocket before your insurance company starts covering costs. It’s essential to pick deductibles that are affordable for your business.
Endorsements refer to additional coverage that you can add to your policy. It’s important to consider any additional risks that your business may face and add endorsements accordingly.

How to File a GL Insurance Claim

Filing a General Liability Insurance claim is a straightforward process. First, report the incident to your insurance company as soon as possible. Provide any necessary documentation, such as medical bills or repair estimates. Your insurance company will investigate the claim and determine if it’s covered under your policy. If the claim is covered, your insurance company will provide a settlement or pay for any costs related to the claim.

Conclusion

General Liability Insurance is a crucial aspect of any business, protecting you from financial losses that may arise from lawsuits or claims filed against you. Understanding what GL Insurance covers is essential to ensure that your business is adequately protected. By following the tips in this guide, you can choose the right coverage, file a claim when necessary, and protect your business from any unexpected incidents.