Accidents happen. Misunderstandings happen. Lawsuits happen. Even the most diligent business owners may, at some point, be faced with an accusation that their company is legally responsible for injuries or property damage. Whether the claim is found to have merit or not, the costly process of mounting a defense can be devastating – which is why general liability insurance is so important.
What’s Covered?
General liability insurance protects your company’s future in the event that a third-party gets injured or experiences property damage because of (or in conjunction with) your business operations. For example, a vendor being injured on your property, a customer getting hurt while using your product, or a competitor accusing you of slander in an advertising campaign. It may be purchased as an individual policy or packaged with other types of coverage in a business owners policy or commercial package policy.
As with all types of insurance, coverage can vary depending on the details of the policy, but general liability insurance often covers defense costs, medical bills, and settlement or damage awards related to:
- Bodily Injury & Property Damage for any physical injuries to people outside of your organization or damages to a third party’s “tangible” property that could occur as a result of your or your employees’ actions (or lack thereof).
- Product Damage for injuries or illnesses that your product (something you manufactured, distributed, or sold) caused. Product liability coverage may be included in your general liability insurance.
- Personal & Advertising Injury for damages that can occur as a result of your company’s written or verbal communications, such as libel, slander, or copyright infringement.
- Rented Property Damage for damages to non-owned buildings, structures, or land that occurs as a result of your or your employees’ actions while conducting business.
As we mentioned above, insurance policies can vary greatly, so it’s absolutely essential that you understand the details of your coverage, including all exclusions.
What’s Not Covered?
General liability insurance covers a broad range of exposures, but it doesn’t cover everything – such as:
- Employee Injuries – which are covered by Workers’ Compensation Insurance.
- Company-Owned Property – which is covered by Commercial Property Insurance and Equipment Replacement Coverage.
- Professional Mistakes – which is covered by Professional Liability Insurance.
- Work-Related Car Accidents – which are covered by Commercial Auto Insurance.
- Data Breaches & Customer Data Losses – which are covered by Cyber Liability Insurance.
It’s important to note – these are general risk exposures that aren’t covered by general liability insurance and not a list of specific exclusions. You should always refer to the details of your policy to understand your coverage.
We Can Help You Understand Your General Liability Insurance Needs
At Swarts, Manning & Associates, we provide a unique perspective on all of your commercial coverage options, and we help to determine which carrier best fits your business needs. We strive to find you the broadest coverage at the best available rate. Give us a call to get started: (833) 878-2820.
Each week, Swarts, Manning & Associates covers relevant topics for your business. Stay tuned to hear more discussions about managing your insurance and industry-specific tips.
