General liability insurance safeguards you from claims that could hurt your business, like lawsuits and property damage. This insurance coverage will form the foundation of your small business protection.
Business owners and contractors need general liability (GL) insurance to safeguard their financial health. A single accident could lead to a lawsuit that could put you out of business unless you have adequate liability coverage in place. GL insurance provides protection from a variety of claims that could arise from business operations, including bodily injury, property damage, and personal injury.
What General Liability Insurance Covers
General liability coverage may be included in a business owner’s policy (BOP) or written as stand-alone coverage. It can protect your business from a number of risks, including property damage, bodily injury, damage to rented premises, medical payment, advertising errors, and harm to reputation.
Property Damage and Bodily Injury
This coverage helps protect against claims alleging bodily injury or property damage caused by your business operations or products.
Damage to Rented Premises
If your business is occupying rented premises, GL insurance can provide protection against damage to the premises caused by fire, lightning, or explosions.
Medical Payments
If a person is injured on business premises, general liability insurance can help protect against claims for costs of medical treatment.
Advertising Errors
This insurance can protect your business against claims associated with advertising your goods, services, or products.
Harm to Reputation
GL insurance can provide protection against claims of slander, libel, wrongful eviction, malicious prosecution, and violation of the right of privacy.
General Liability Insurance Costs
The cost of general liability coverage for your business is affected by a number of factors, including:
- Type of business
- Number of employees
- Level of risk exposure
- Location of business
Some businesses, by their very nature, have higher risk exposure than others. Our agent at ABC Insurance Services in Houston, Texas, can help you obtain complete general liability coverage for your business, and we focus on finding the best level of coverage at the lowest possible rates.
- Third Party Bodily Injury. If a person is injured on your business property, he may make a bodily injury claim against your business. For example, a package delivery man trips on loose carpeting in your accounting office, falls and breaks his wrist. General Liability Insurance can help cover the costs of the bodily injury claim he makes against your business for this accident.
- Third Party Property Damage. If you or someone on your payroll damages a third party’s property, you may face a property damage claim. General Liability Insurance can help cover the costs of property damage claims made against your business. For example, an employee using equipment on your business property accidentally damages your neighboring business’s office. The neighboring business makes a property damage claim against your business. General Liability Insurance can help cover the costs to settle this property damage claim.
- Advertising Injury. General Liability Insurance can help cover the costs of a claim made against your business because of its advertising practices. For example, a business in the same industry as yours makes a claim that your advertising looks too similar to theirs and is infringing on their business. General Liability Insurance can help cover the costs your business will incur to deal with this claim.
- Reputation Harm. Other businesses may make a claim that your business has harmed their reputation. For example, during an interview about your business, you are asked to comment on what you think of the competition. The competitors read this interview and make a claim that your business slandered theirs. General Liability Insurance can help cover the costs to resolve claims of libel and slander against your business.
- Additional Insured ( Optional ). It will automatically covers any person or organization as additional insured where required by contract.
- Legal teams to represent your small business
- Witness fees
- Evidence costs
- Judgments or settlements