General Liability Insurance Explained
What Is General Liability Insurance?
General Liability Insurance is one of the most important types of business insurance you can have. It helps protect your business from the everyday risks that come with running a business – things like accidents, property damage, or lawsuits from third parties.
Imagine someone slips and falls at your office, or your employee accidentally damages a client’s property. General liability insurance helps cover the costs of those claims, so they don’t come out of your pocket.
What Does General Liability Insurance Cover?
Here’s what’s typically included in general liability coverage:
- Bodily Injury – If someone gets hurt on your premises or because of your business operations.
- Property Damage – If your business accidentally causes damage to someone else’s property.
- Legal Defense Costs – If someone sues your business, this helps pay for attorney fees, court costs, and settlements or judgments.
- Personal and Advertising Injury – Things like libel, slander, or copyright infringement in your ads or marketing materials.
Depending on the type of business you run, you may need products or completed operations coverage. Examples are contractors, manufacturers, do any repairs or resell imported goods.
Why Do You Need General Liability Insurance?
Even the most careful businesses can face unexpected accidents or legal claims. General liability insurance helps protect your finances and your reputation—so you can focus on running your business with confidence.
Most insurance companies now require their clients to make sure their tenants and subcontractors have insurance. They will want proof that you are added on as an additional insured which helps protect you from something your tenant or subcontractor does. So having coverage in place can help you win more business!
How Is the Cost of My General Liability Insurance Determined?
Several factors go into determining the cost and availability of general liability insurance. The two largest factors for determining the rate are the type of operations and your annual gross sales.