Understanding General Liability Insurance

General liability insurance is comprehensive yet specific. It extends beyond your business location to include client sites or anywhere your business operates. By understanding its coverage, you can protect your business and focus on what matters most: serving your customers and growing your enterprise.

What Is General Liability Insurance?

General liability insurance provides financial protection against specific third-party claims. When your business encounters lawsuits or claims from customers, partners, vendors or other third parties, general liability insurance can assist in covering financial losses.

What Does this Insurance Cover?

General liability insurance can help with the following situations:

• Third-party bodily injury—Imagine a customer slipping and falling in your store. If they get hurt, they can sue your business. General liability insurance may help pay for their medical bills. 
• Third-party property damage—If your business damages someone else’s property, property damage liability coverage may assist with repair or replacement costs.
• Reputational harm—Your business could face libel or slander claims due to something you or your employees said. General liability insurance may help cover legal costs for defense.
• Advertising injury—If your business infringes on copyrights (e.g., using a photographer’s image without permission), general liability insurance may offer financial protection.

Who Needs General Liability Insurance?

Any business, regardless of size or industry, can benefit from general liability insurance. Whether you run a retail store, construction company or provide professional services, having this coverage is essential. It can protect your bottom line and shield you from unexpected financial burdens. General liability insurance is typically not legally required; however, it may be mandated as part of a commercial lease. Even if not required, it’s highly recommended for most businesses and professionals, such as the following:

• Contractors—Construction contractors, landscapers, painters and other tradespeople benefit from general liability insurance due to the risks associated with their work.
• Business owners—Whether you run a retail store, restaurant or consulting firm, having general liability insurance can help financially protect your business against unexpected claims.
• Professionals with clients—Architects, photographers and other professionals who interact with clients should consider general liability coverage.
• Food trucks and caterers—Mobile businesses face unique risks, and general liability insurance can offer financial protection.

How to Get General Liability Insurance

If you have any specific questions or are ready to obtain a policy, contact Global Insurance and Tax Services. We can make coverage recommendations tailored to your needs. Let us assess your operations and help you find the right general liability policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.