General Liability Insurance: What Does It Actually Cover?

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A blog from Hollinger Insurance Services

If you own a business, you've probably heard that you need general liability insurance. But what does it actually protect you from?

General liability insurance is one of the most common types of business insurance because it helps protect your company from some of the everyday risks that come with interacting with customers, clients, vendors, and the public.

From a customer slipping at your business to accidentally damaging someone else's property while completing a job, the right coverage can help protect your business from expenses that might otherwise come directly out of your pocket.

What Does General Liability Insurance Cover?

While every policy is different, commercial general liability insurance typically provides protection in several important areas.

Customer Injuries

If a customer, client, or other third party is injured because of your business operations, general liability insurance may help cover related medical expenses, legal costs, and settlements or judgments.

For example, a customer could slip on a wet floor in your store, or a client could trip over equipment while you're completing work at their property.

Even when a business takes appropriate safety precautions, accidents can happen.

Damage to Someone Else's Property

General liability can also provide protection when your business operations accidentally cause damage to property belonging to someone else.

Imagine a contractor accidentally damages a customer's flooring while completing a project, or an employee knocks over and damages an expensive piece of equipment at a client's location.

Depending on the circumstances and your policy, general liability coverage may help with the resulting claim.

Lawsuits and Legal Expenses

Sometimes an incident turns into a lawsuit.

One of the most important benefits of general liability insurance is the protection it can provide for certain legal expenses associated with a covered claim. Attorney fees, court costs, settlements, and judgments can become expensive quickly, even for a small business.

Having appropriate liability coverage can help protect your business financially when a covered claim escalates.

What Doesn't General Liability Insurance Cover?

One of the biggest misconceptions about general liability insurance is that it covers every risk your business faces.

It doesn't.

For example, general liability typically isn't designed to cover:

• Injuries to your employees
• Damage to your own business property
• Business-owned vehicles
• Professional errors or mistakes
• Certain cyber incidents or data breaches

Those risks may require other types of coverage, such as workers' compensation, commercial property, commercial auto, professional liability, or cyber insurance.

This is why it's important to look at your business insurance as a complete coverage program rather than relying on a single policy.

Does Every Business Need General Liability Insurance?

The risks aren't the same for every business, but general liability is an important coverage to consider for many businesses, especially if you interact with customers, work at client locations, rent commercial space, or enter into contracts that require proof of insurance.

Your industry, operations, location, contracts, and overall exposure can all affect the type and amount of liability coverage that's appropriate for your business.

Coverage That Fits Your Business

At Hollinger Insurance Services, we don't believe business insurance should be one-size-fits-all.

As an independent insurance agency, we work with multiple commercial insurance carriers to compare options and help businesses find coverage that fits their operations, exposures, and budget.

Have questions about your current general liability coverage, or aren't sure whether you have the protection your business needs?

Talk with Hollinger Insurance Services. We'll help you understand your options and make business insurance simple.

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