2024-01-01 · business, liability

General Liability Coverage

Overview

General liability insurance helps businesses pay for third-party injury, property damage, and advertising injury claims. It is a foundational policy for many companies and often required by landlords or clients.

What general liability insurance typically covers

• Bodily injury: medical expenses and legal costs if someone is hurt on your premises.
• Property damage: damage to a client’s or third party’s property.
• Personal and advertising injury: claims like libel, slander, or copyright infringement in ads.
• Medical payments: limited no-fault medical expenses for minor injuries.

Common exclusions and limitations

• Professional services: errors or negligence require professional liability coverage.
• Employee injuries: handled by workers’ compensation.
• Auto-related claims: require commercial auto insurance.
• Intentional acts or criminal activity: excluded.

Key cost factors

• Industry and risk level: higher-risk trades pay more.
• Revenue and payroll: larger operations typically cost more to insure.
• Policy limits: higher limits increase premiums.
• Claims history: prior claims can raise rates.

How to compare policies

1. Review occurrence vs claims-made: occurrence policies cover incidents during the policy period.
2. Check limits and aggregate caps: ensure limits fit your contracts.
3. Confirm additional insured options: important for vendor and landlord requirements.
4. Look for endorsements: product liability or completed operations may be required.

Tips for choosing coverage

• Align limits with contract requirements to avoid coverage gaps.
• Bundle general liability with property coverage via a BOP if eligible.
• Review certificates of insurance workflows for clients and partners.

Frequently asked questions

Do I need general liability if I work from home? Yes, if you have client interactions, deliver products, or could be sued for injuries or damage.

Does it cover faulty work? It may cover resulting damage, but defective workmanship itself is often excluded.

Is general liability required by law? Not usually, but many clients and leases require proof of coverage.