An often-cited reason for businesses to purchase general liability insurance is for peace of mind. Such protection provides peace of mind when unexpected liabilities threaten financial stability or damage your company’s image. If a customer slips and falls at your business or an employee accidentally damages an expensive outdoor sculpture while performing services on the client’s property, general liability coverage could cover medical costs, repair expenses, and legal fees related to any injury sustained as a result of an incident.
1. Coverage for Damages
If someone slips and falls in your store and breaks their arm, a commercial general liability policy could help cover medical expenses. Furthermore, should one of your employees accidentally drop one of the client’s expensive outdoor sculptures while transporting it, insurance could cover repair costs.
These policies typically provide coverage limits of $1 million per occurrence and $2 million total property damage; combined with commercial umbrella insurance, they can extend coverage limits for larger claims. In addition, this coverage offers protection from claims related to libel, slander, and copyright infringement; it won’t, however, cover your own personal assets.
2. Coverage for Medical Expenses
Medical expenses incurred as the result of injuries on your premises or from business operations may be covered under your commercial general liability (CGL) policy, but can also be purchased as an individual policy or add-on.
Workers’ compensation insurance (required in most states legally) covers employee work-related injuries; it also does not protect damage to your own property, which would need to be protected with commercial property coverage or an add-on policy. Instead, this insurance provides coverage against allegations of personal and advertising injury, including copyright infringement, defamation, or slander claims against you or against the business itself.
3. Coverage for Legal Expenses
Bodily injury coverage assists your business by paying medical expenses incurred due to customers, vendors, or others injured on its premises. Property damage coverage provides repairs or replacement costs in case your operations cause property damage to third-party properties, and personal and advertising injury insurance offers protection from reputational injuries such as libel and slander copyright infringement claims as well as non-physical injuries such as copyright infringement.
General liability insurance provides coverage for legal fees, court costs, and settlements associated with defending against lawsuits against your business. This coverage can help safeguard both its reputation and revenue for years.
4. Coverage for Damages to Property
If a third party is injured by your services, products, or operations and requires legal proceedings to recover damages, general liability insurance can help cover their legal fees as well as repairs/replacement of their damaged property.
Property damage coverage is often provided as part of a comprehensive small business insurance policy, though it won’t protect against damages to your own property, which should be covered under commercial property insurance or business owners policy (BOP). For instance, transporting customer rugs for cleaning doesn’t qualify as property damage under general liability.
5. Coverage for Damages to Goods
General business insurance policies offer protection for any damages caused by your products or services or contractors hired by your business. They also cover any potential unforeseen incidents caused by these contractors working for them.
General liability business insurance policies cover claims related to reputational harm, advertising injury, and copyright infringement—often used by retail or food and beverage businesses that need additional coverage. General liability policies can be combined with other forms of protection to provide more comprehensive protection; for instance, commercial property insurance can help pay to repair or replace stolen or damaged company assets.
6. Coverage for Damages to People
No matter the cause—whether a customer falls and breaks their arm in your retail store or one of your employees accidentally damages an expensive outdoor sculpture while providing landscaping services—your business could be sued for bodily injuries caused. With general liability coverage, medical expenses and legal costs related to bodily injury claims can be covered, as well as costs to defend them.
General liability policies provide coverage for property damage but don’t extend to protecting your own commercial properties. To shield them from risks that you are responsible for and lower premium costs, purchasing commercial property insurance could be the way forward.
7. Coverage for Damages to Property
Damage to real and personal property is another claim covered by general liability insurance. For instance, if one of your employees damages an expensive sculpture owned by one of your clients while providing landscaping services, property damage coverage could help cover its repair or replacement.
Commercial general liability insurance provides your business with protection from risks that are inherent to running it, such as third-party claims of bodily injury, property damage, and personal/advertising injury caused by its services, operations, or employees. When combined with other policies like commercial property or workers’ compensation, it forms the Business Owners Policy (BOP). For more information about it, visit BOPinsurance.info
8. Coverage for Damages to Goods
No matter if you sell products or provide services, general business liability insurance provides financial security. This coverage helps cover repair or replacement costs when third-party property is damaged due to your business activities.
This coverage can cover an event such as someone slipping and falling on your property or an employee accidentally damaging client property during work, as well as protecting against lawsuits for libel or slander filed by clients. Some clients require you to have this form of commercial liability insurance before doing business with you; it can also be combined with other forms of business insurance to form a comprehensive small business insurance package.
9. Coverage for Damages to People
Legal disputes can be costly and disruptive to any business, regardless of their outcome. General liability insurance transfers some of this risk onto its provider, helping your budget remain intact while you focus on what matters most for your organization.
This coverage also protects you against claims of advertising injury (libel or slander), copyright infringement, and any non-physical damages that could harm the brand’s reputation, such as accidental property damage caused by employees or inadvertent use of photos in marketing materials without authorization by clients or inadvertent use in your marketing materials without permission resulting in copyright infringement or copyright infringement lawsuits against the business. For example, if one of your employees accidentally damages client property or uses them without their permission in marketing materials, this protection can cover repair or replacement costs should the situation arise.
