What Does General Liability Insurance Cover?

19 Mar What Does General Liability Insurance Cover?

Regardless of size or industry, every business faces potential risks that could lead to financial losses. Numerous unforeseen circumstances can impact your operations, from property damage to injury claims. This is where general liability insurance comes in. It’s one of the most essential insurance policies for businesses, offering protection against risks that could otherwise lead to significant financial strain.

Understanding what this coverage entails can help you make informed decisions for your business.

What Does General Liability Insurance Cover?

1. Bodily Injury Coverage:
   One of the most common claims businesses face is bodily injury. If a customer slips and falls on your property or gets hurt while interacting with your business, general liability insurance will cover medical costs, legal fees, and any settlements if your business is found responsible. This is particularly important for companies that regularly host customers or clients.
2. Property Damage Coverage:
   Whether a spilled drink is ruining a client’s equipment or accidental damage to a neighboring business, general liability insurance covers repairing or replacing damaged property. This protection is essential for companies that interact with clients’ or other businesses’ property during their operations.
3. Personal Injury and Advertising Injury:
   This aspect of general liability insurance protects your business if you’re accused of defamation, libel, slander, or other personal injury. If your marketing campaigns unintentionally harm someone’s reputation or result in a lawsuit, this coverage protects your business from these legal costs.
4. Legal Defense Costs:
   Even if a claim against your business is baseless, the cost of defending yourself in court can be significant. General liability insurance covers legal defense costs, helping companies avoid expensive litigation fees and ensuring your business can continue operating without financial disruption.
5. Product Liability Coverage:
   If your business manufactures, sells or distributes products, product liability coverage protects against claims related to injuries or damages caused by defective products. Whether the issue arises from manufacturing defects, design flaws, or insufficient warnings, this coverage can save your business from the financial consequences of a product-related lawsuit.
6. Tenant Liability Coverage:
   If you lease property for your business, general liability insurance can provide coverage if you’re held responsible for damage to the property or injuries that occur while you’re occupying the space. This includes protecting your business from claims resulting from incidents within the leased premises.

Learn the Importance of General Liability Insurance with Us

General liability insurance is essential to any business’s risk management strategy. It covers several incidents that could otherwise lead to financial strain, including bodily injury, property damage, and legal defense costs. While it doesn’t cover all risks, it’s a crucial starting point for business protection.

At Kevin S. Dougherty Insurance Agency, we offer expert guidance to help you select the right coverage to meet your business needs. Whether you’re just starting or managing a growing business, we’re here to help you secure the protection you need to thrive. Contact us today or call our team at (630) 575-0800 for more information on how general liability insurance can benefit your business.