The Ins and Outs of General Liability Insurance

The Ins and Outs of General Liability Insurance

As a small business owner, you have a lot on your plate. From making sure to pay the bills, to promoting your business and sales— the to-do list can seem never ending. Understanding general liability insurance and whether you have enough of it, doesn’t have to be on the list with our easy to follow guide.

What is General Liability Insurance?

General liability (GL) protects your business from claims involving customer injuries, customer property damage and lawsuits related to both.  You can buy it as a standalone policy or as part of a Business Owner’s Policy (BOP).

The following are examples of the types of claims covered by a GL policy:

  • A customer slips and falls at your place of business and is injured.  Your GL policy would cover costs, including medical expenses, lost wages, and any court-awarded compensation or out-of-court settlements in the event of a lawsuit.
  • While installing a new kitchen, one of your co-workers forgets to shut off the water and floods the kitchen.  Water seeps into the floors and walls of the finished basement.  Your GL policy will cover costs to repair the damages to the basement. This applies to real estate, equipment, and supplies, as well as compensation for loss of use during the time it takes for the damaged property to be repaired or replaced.
  • Your business makes ergonomic chairs. A customer says they were sitting on the chair and it unexpectedly tipped backward, causing them serious injuries. They are seeking damages for the allegedly defective chair.  Your GL policy would cover your business if sued by someone who is injured by a product you make or sell, or by work you have completed.

If a lawsuit is filed against your business for a covered loss, your GL policy will also cover the legal costs to defend you, including attorney fees and court costs.

GL coverage safeguards your business’s finances and reputation in the event a customer or third party takes legal action against you or your employees.

To learn more about how general liability can protect the investment you’ve made in your business, connect with an independent insurance agent today.

This website is general in nature, and is provided as a courtesy to you. Information is accurate to the best of Liberty Mutual’s knowledge, but companies and individuals should not rely on it to prevent and mitigate all risks as an explanation of coverage or benefits under an insurance policy. Consult your professional advisor regarding your particular facts and circumstance. By citing external authorities or linking to other websites, Liberty Mutual is not endorsing them.