What is General Liability Insurance?
General Liability Insurance is coverage for the day to day operations of your business. General Liability Insurance protects your business from a variety of claims from third parties such as customers and other businesses to whom you are legally liable in the event of injury or damages incurred as a result of actions by you, your employees or simply at your place of business. These claims include bodily injury, property damage and personal injury claims that can arise from your day to day business operations.
General Liability Insurance protects you by paying for medical bills, property damage or personal injury for which your business is found liable, up to the policy limits, as well as attorneys' fees and other legal defense expenses.
If you are renting property for your business, General Liability Insurance can also protect you and your business against any liability for damage to the rented property such as by fire or other covered loss.
How is General Liability Insurance different than other forms of Liability Insurance?
General Liability Insurance is designed to protect a wide range of businesses, especially businesses that serve the general public. If you have a brick and mortar business with walk-in customers or a service business where you or your employees provide a service to a wide range of customers at their home or business, then General Liability Insurance may be sufficient protection for your business.
However, in addition to General Liability Insurance, there are many specific types of Commercial Liability Insurance. These liability insurance policies are designed specifically for certain types of businesses and exposures such as Medical Malpractice Insurance, Contractors Liability Insurance and Product Liability Insurance.
While most businesses can benefit from coverage provided under a General Liability Insurance policy, ask your Alliance Insurance Agency commercial insurance specialist about more specific coverage tailored to your industry.
(See COMMERCIAL LIABILITY INSURANCE for a list of these specialized coverages)
What is the difference between Bodily Injury, Property Damage and Personal Injury Claims?
While the legal definition of these three types of claims can be somewhat lengthy, below are three simple examples that can be very helpful for understanding the differences between the three.
Bodily Injury: A customer trips and falls on a wet floor in your place of business. You are legally responsible for any physical injuries they may suffer as a result of the fall. General Liability Insurance covers their related medical expenses up to your policy's limits of liability.
Property Damage: You are visiting a client and accidentally spill coffee on their computer resulting in damage to the computer and a loss of data that will take many hours to replace or replicate. General Liability Insurance will cover the subsequent claim up to your policy's limits of liability.
Personal Injury: One of your employees is visiting a customer at their place of business. Your employee makes small talk about another one of your customers and says something false and very insulting about them. The other customer learns about this and sues your business for slander. General Liability Insurance will cover the subsequent claim up to your policy's limits of liability and if necessary even pay for an attorney to defend you.
Any business can be sued and General Liability Insurance is the minimum protection any business should have to protect you, your business, your family and assets from legal actions against your business. To make sure that your business is adequately protected from potential claims for which you are legally liable, contact a Commercial Insurance Specialist at Alliance Insurance Agency Services, Inc.