General Liability Insurance is one of the most important types of liability insurance policies a professional can have in place in order to protect their business. Lawsuits are extremely expensive and can have a long-lasting effect on your business and its reputation. General Liability Insurance not only covers bodily injuries and property damage to third parties, but it can also provide defense coverage against claims related to these incidents.
You may have also heard the phrase: Commercial General Liability
What does General Liability Insurance Cover?
General Liability Insurance helps protect your business from a loss should you be found liable for bodily injury or property damage to a third-party. If you are found liable for any of the above, General Liability Insurance can help cover the costs associated with legal fees or monetary damages due to the injured third-party.
Third-Party Property Damage
This occurs when you unintentionally damage or destroy someone else's property while on the job. General Liability Insurance covers the costs associated with replacing or repairing the damaged property. This can also cover any legal expenses incurred due to this incident.
For example:
•If a plumber drops a piece of equipment while setting up his tools at a client's house and cracks the floor, they could be liable to absorb the cost for repairs.
Third-Party Bodily Injury
Third-party bodily injury can occur when a client injures themselves because of your negligence, either on or off your premises. General Liability Insurance can cover the costs associated with medical bills and lost wages, as well as any fees related to a lawsuit stemming from this incident.
For example:
•If someone injures themselves tripping over plumber equipment that is laying on the floor when walking out of the house door.
Medical Payments
Medical expense coverage can provide payment for third-party medical expenses, regardless of fault, up to $5,000.
What General Liability Policy Does Not Cover?
•General Liability Insurance does not cover professional wrongful acts or errors. That is a Professional Liability Insurance(aka Errors & Omissions Insurance) and is a separate type of coverage.
•General Liability Insurance also do not cover you for costs associated with damage to your own property. That can be protected through a Property or Inland Marine Insurance policy (equipment coverage).
•General Liability Insurance does not cover any employee injuries. Employee injuries would be covered under a Workers' Compensation policy.
