General Liability Insurance
A customer trips on uneven pavement in your store. You spill coffee on a client’s laptop. Your social media manager inadvertently tweets a defamatory statement about a competitor. All of these are common, easy-to-make blunders—and they can all become very expensive, very quickly, if you don’t have general liability coverage to protect you against these types of claims.
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General Liability Insurance
What is General Liability Insurance?
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Virtually every business needs general liability insurance, which, along with commercial property insurance and business interruption insurance, forms the trio of coverages included in a Business Owners’ Policy (BOP) package.

What is General Liability Insurance?
What does general liability insurance cover?
General liability insurance protects a business financially in case a third party brings a personal injury or property damage lawsuit against the company. Most GLI policies will cover the legal and administrative costs associated with the suit, as well as the cost of the medical and property damages. Here are a few of the scenarios covered by a GLI policy:
BODILY INJURY
If someone is injured on company property or as the result of company operations, it’s very likely that the business can be held liable—even if it doesn’t seem like they should be at fault. General liability insurance covers the legal costs of the suit as well as any court-ordered payments to the plaintiff.
ADVERTISING INJURY
The definition of personal injury extends beyond the physical. If your business steals someone’s idea or infringes upon another business’s copyright, it can be held liable for the damage to the affected party’s business, reputation, and income. Not all GLI policies cover advertising injury, especially in industries like media and communications. Businesses that deal heavily in media content and are at higher risk of these claims often take out a separate media liability insurance policy.
PROPERTY DAMAGE
You can be held liable for property damage caused not just by your own employees, but also by any subcontractors or freelancers you have working on your behalf. General liability coverage compensates the complainant for both the cost of the damaged item and for any financial losses that may occur while the damaged item is out of use.
PRODUCT LIABILITY
If a company’s primary business is selling a product, typically it will need to enroll in a dedicated product liability insurance policy. However, general liability does offer some protection in case a party is injured by a company’s product. Whether or not a specific product scenario is covered by GLI will depend on the particular circumstances, so it’s important to discuss this with your carrier to determine whether you need additional product liability coverage.
What’s not covered?
General liability only covers claims from third parties, like customers and contractors. Employee injury claims are covered by workers’ comp insurance, not GLI. GLI also only covers damage to third parties’ property, not your own. If a customer slips and falls in your store and breaks a shelf on the way down, GLI will cover the cost of the customer’s injuries and damages. The company’s property isn’t covered under GLI, but businesses can protect their physical assets with a separate commercial property insurance policy.

Who is general liability insurance for?
JUST ABOUT EVERYONE
All business necessitates risk. General liability insurance is a basic safety net that’s designed to protect businesses against common incidents—and no matter how unlikely those incidents may seem, GLI is the only way to guarantee you and your business stay safe.
JUST ABOUT EVERYONE
All business necessitates risk. General liability insurance is a basic safety net that’s designed to protect businesses against common incidents—and no matter how unlikely those incidents may seem, GLI is the only way to guarantee you and your business stay safe.
PHYSICAL STOREFRONTS
If your business has a physical location that hosts customers and third parties, you need general liability insurance to protect against potential physical accidents that occur on your property. Without coverage, legal and medical costs can bankrupt you and your business.
PHYSICAL STOREFRONTS
If your business has a physical location that hosts customers and third parties, you need general liability insurance to protect against potential physical accidents that occur on your property. Without coverage, legal and medical costs can bankrupt you and your business.
ON-SITE CONSULTANTS
If you or your employees visit other properties, there’s a chance that you could damage that property—and if it takes place while you’re there on business, the company will be held liable. GLI provides compensation for damaged equipment as well as revenue that may be lost until the equipment is fixed or replaced.
ON-SITE CONSULTANTS
If you or your employees visit other properties, there’s a chance that you could damage that property—and if it takes place while you’re there on business, the company will be held liable. GLI provides compensation for damaged equipment as well as revenue that may be lost until the equipment is fixed or replaced.
CONTRACTORS
You may feel fairly confident in your employees’ competency, but if you hire contractors to work on part of a project and they cause damage to the property, you can be held liable for their mistakes as well. If your subcontractors mess up, your GLI policy will cover the cost of the damage.
CONTRACTORS
You may feel fairly confident in your employees’ competency, but if you hire contractors to work on part of a project and they cause damage to the property, you can be held liable for their mistakes as well. If your subcontractors mess up, your GLI policy will cover the cost of the damage.
Frequently Asked Questions
Every business should consider general liability insurance, although it’s not legally required like workers’ comp. However, GLI may be mandatory for certain contracts or when obtaining specific licenses and permits.
The right coverage amount for any company is determined based on a number of factors, like company size and industry. This is one of the things PolicyApe will help you calculate. The standard general liability policy for most small businesses is a $1 million per claim limit and a $2 million policy limit.
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