General liability insurance is a type of business insurance that provides protection against claims of bodily injury or property damage caused by your business operations, products, or services. It covers the legal costs of defending your business against lawsuits and any settlements or judgments that may result from them. General liability insurance can also provide coverage for advertising injuries, such as slander or copyright infringement, and damage caused by your employees while on the job.
General liability insurance coverage is something most businesses simply must have, so it’s essential that you understand what it does and doesn't cover.
What is general liability insurance?
Most businesses need general liability insurance to protect themselves against various risks, including:
Third-party bodily injury: If someone is injured on your business premises, such as a customer or vendor, and sues you for medical expenses, general liability insurance can provide coverage.
Property damage: If your business operations cause damage to someone else's property, such as a client's office or home, general liability insurance can provide coverage.
Advertising injury: If your business's advertising, such as marketing or social media content, infringes on someone's copyright or trademarks, general liability insurance can provide coverage.
Product liability: If your business manufactures, distributes, or sells products and a customer is injured or harmed as a result of the product, general liability insurance can provide coverage.
Legal defense costs: General liability insurance can also cover legal fees, court costs, and other expenses related to defending your business against lawsuits.
It is important to note that not all general liability insurance policies are the same, and coverage limits and exclusions can vary. It is important to work with an experienced insurance agent to ensure you have the right coverage for your business's specific needs.
Who needs general liability insurance?
Business liability insurance endorsement options
Business liability insurance endorsement options can vary depending on the insurance provider and the specific needs of the business. Here are some common endorsement options:
Umbrella Liability: This endorsement provides additional coverage beyond the limits of your general liability policy. It is designed to protect your business from catastrophic events.
Professional Liability: This endorsement, also known as errors and omissions insurance, provides coverage for professional mistakes that result in financial loss to a client or customer.
Product Liability: This endorsement provides coverage for bodily injury or property damage caused by a product your business manufactures, sells, or distributes.
Cyber Liability: This endorsement provides coverage for losses caused by cyber-attacks, data breaches, and other cyber threats.
Employment Practices Liability: This endorsement provides coverage for employment-related claims such as discrimination, harassment, and wrongful termination.
Liquor Liability: This endorsement provides coverage for businesses that serve or sell alcohol, such as bars, restaurants, and liquor stores.
Hired and Non-Owned Auto Liability: This endorsement provides coverage for liability arising from the use of vehicles not owned by the business, such as rental cars or employee-owned vehicles used for business purposes.
These are just a few examples of the many endorsement options available to businesses for their liability insurance coverage. It's important for business owners to work with their insurance provider to determine which endorsement options are necessary for their specific industry and operations.