What Does General Liability Insurance Actually Cover?
Hi there! If you’re running a business, you’ve probably heard about general liability insurance before. But you might still be wondering, what does it actually cover? Don’t worry—we’ll clear everything up for you in the simplest way possible.
Understanding is essential for protecting your business, employees, and customers. Stick around to learn what it covers, how it works, and why it’s a must-have.
What is General Liability Insurance?
Its often just called “GL insurance,” is like a safety net for your business. It’s designed to protect your company from financial losses if something goes wrong during day-to-day operations.
Whether you’re a small business or an established company, accidents happen, and this type of insurance helps you absorb the unexpected costs that could otherwise hurt your business.
Who Needs Insurance?
Honestly? Pretty much every business can benefit from insurance. If you:
- Work directly with customers or clients
- Own or rent a physical space
- Advertise your products or services
- Hire employees
…you should have this coverage. Still not sure? Keep reading to learn more about what it actually covers.
What Does it Cover?
1. Bodily Injury
If someone gets injured on your property or because of your business, It helps cover medical expenses. For example, if a customer slips and falls in your store, this coverage kicks in to pay their medical bills—and potentially protect you from a lawsuit.
2. Property Damage
Mistakes happen! If your business accidentally damages someone else’s property, this policy has your back. For instance, if you’re a contractor and one of your employees damages a client’s home, liability insurance helps pay for the repairs.
3. Personal and Advertising Injury
Did you know your business can get sued for things like slander, libel, or false advertising? GLI can help cover legal fees and damages if accusations like these arise.
4. Product-Related Issues
If your business manufactures or sells products and someone claims that one of them caused harm or injury, you might be held liable. Liability coverage helps you handle those claims without breaking the bank.
5. Legal Fees
Sometimes lawsuits happen, even if the accident wasn’t your fault. Liability insurance doesn’t just cover damages—it can also help pay for legal fees, court costs, and settlements.
What Isn’t Covered by General Liability Insurance?
It’s essential to note that general liability insurance doesn’t cover everything. For example:
- Employee injuries aren’t covered (you’ll need workers’ compensation insurance for that).
- Damage to your own business property requires commercial property insurance.
- Professional errors or negligence are usually handled by professional liability insurance.
That’s why it’s important to talk to a trusted insurance advisor and create a policy tailored to your unique needs
Why is General Liability Insurance Important?
Picture this—you’re running a great business, everything’s going smoothly, and then out of nowhere, a customer trips, falls, and sues you. Without insurance, you might have to handle their medical bills and legal fees on your own. That could cost thousands or even millions of dollars.
General liability insurance gives you peace of mind, so you can focus on running your business without worrying about what could go wrong. It’s not just protection—it’s smart business planning.
How Do You Choose the Right General Liability Insurance?
Finding the right policy might feel overwhelming, but it doesn’t have to be! Here are a few tips to make it easier:
- Know Your Risks – Think about the specific risks your business faces. Do you have a storefront? Work with heavy equipment? Handle client data?
- Shop Around – Insurance premiums can vary, so it’s always worth comparing different providers.
- Work with Experts – Insurance professionals can help you customize a plan that’s perfect for your business.
The Bottom Line
General liability insurance is like having a security blanket for your business—it protects you from unexpected costs related to accidents, injuries, or lawsuits. If you want to safeguard your hard work and focus on growth, getting a general liability policy is essential.
Still have questions or need help finding the right policy? Contact Insurance Company Hilliard Ohio today. We’re here to support you every step of the way and make sure your business is protected!
