General liability is a common and important policy suited for nearly every business. This is because general liability is designed to cover basic dangers that a business may face day in and day out.
Accidents Covered Under General Liability Insurance
General liability insurance policies cover three main areas:
- Bodily Injury: Bodily injury coverage steps in if a visitor or customer is injured on your physical location. If someone slips in your restaurant, for example, general liability insurance can help pay for their medical bills and protect you from a related lawsuit.
- Property Damage: If a customer’s property is damaged at your business or due to normal business activities, general liability insurance can compensate for the damaged property and cover the business in case of a lawsuit.
- Personal and Advertising Injury: Personal and advertising injury covers claims against the business regarding libel, slander, malicious persecution, copyright infringement, theft of an advertising idea and more.
Keep in mind that general liability insurance does not cover all liability issues. It only covers claims regarding non-professional negligence.
Non-Professional Negligence vs Professional Negligence
Non-professional negligence refers to accidents not related to a specialized or professional service. Basic accidents will be covered under general liability while professional negligence will not. To cover against professional negligence, which refers to a mistake made by a professional that may cause a client to lose money, you will need professional liability insurance.
Lawsuits Not Covered Under General Liability Insurance
There are other circumstances and lawsuits not covered under general liability insurance, as well. This includes:
- Intentional damage caused on behalf of the business or an employee
- Damage or injury that occurs while an employee or the business is committing criminal acts
- Claims that are not filed within the proper time period set by the policy
Additional Liability Insurances to Consider
There are ways you can bundle different liability policies in order to cover a range of dangers your business may face, such as:
- Directors and Officers Insurance: Directors and officers insurance covers the key employees of your business in case of a lawsuit concerning their activities on a board of directors. This can include employment practices liability, which covers claims regarding sexual harassment, discrimination, wrongful firing or hiring and more.
- Product Liability: Product liability covers bodily injury or property damage your offered or manufactured products may cause to a customer.
- Umbrella Liability: Umbrella liability insurance fills in the gaps left over by your other liability insurance policies.
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