General liability coverage, in general, serves the purpose of protecting your business against a potential lawsuit should a customer be accidentally injured at your office or job site OR if you (or one of your on-the-job employees) accidentally damages a customer’s property.
Given the potentially high cost of even a single injury or property damage claim, and given the expensive nature of legal fees even if you win the suit, general liability insurance is wise to carry for a wide range of business types.
What Does General Liability Cover?
We have already touched upon the basics of what general liability coverage consists in by simply defining it. But here we can review and add some further details.
General liability will cover any or all of the following types of claims:
- Accidental injuries to clients. This covers a big gap since only employees are covered under workers comp insurance. This coverage will be of immediate medical expenses of third parties.
- Damage to client’s’ property. This can take place on your business’ property on in the home of the client in the case of repairmen or mobile IT workers, for example.
- Advertising “injuries.” Often, a general liability policy will cover lawsuits filed over alleged false advertising and related matters.
- Slander/libel. If you are sued for defamation, whether in verbal or written form, your legal expenses will be covered.
- Rental property damage. If you own a rental company, get general liability that includes coverage of damage caused by reckless tenants.
In real terms, the coverage is of attorney fees, court fees, or actual settlements/judgments.
What Won’t General Liability Cover?
We would be remiss if we didn’t mention what general liability coverage will not include. It does not cover:
- You or your employees damaging your business’ property.
- Accidental damage to your company automobiles.
- Accidental bodily injury to your employees.
- Most professional mistakes (“errors and omissions.”)
Thus, general liability is an important piece of the puzzle in protecting your business against legal actions. But you may also need to consider buying other commercial insurance types, such as:
And of course, the state legally requires you to pay for workers compensation insurance.
General liability insurance provides important protection against a wide range of possible lawsuits that your business could face. But it is only one among many types of commercial insurance that you may need for full protection. To learn more or for a free quote, contact Flagler County (FL) Insurance Agency today.