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Commercial Insurance

How General Liability Insurance Protects Your Business

If you're a business owner, you've got assets – and you need to protect them. This includes making sure you have the right type of business insurance to cover your physical and financial assets, as well as your business reputation. And getting a policy tailored to meet your unique business needs and risks? Well, there’s the cherry on top.

We've got just the thing: general liability insurance. It can provide a much-needed safety net against a host of unexpected incidents and liability claims. Not sure you need general liability or other types of business insurance? Consider these real-world examples:

• At your restaurant, a customer slips and falls on a wet floor and sues.

• A product you sell causes property damage at a customer's home.

• You are sued by a competitor (or customer) for false/misleading advertising.

• A vendor you hire to deliver goods to a customer's retail location accidentally damages the customer's loading dock door.

A general liability policy is what smart business owners rely on to cover the legal fees, medical expenses, and repair or replacement costs associated with claims like those above – and more.

What Is General Liability Insurance?

General liability insurance is a type of commercial (business) insurance designed to protect business owners against a wide variety of risks occurring in the course of daily business operations. It can protect your company's finances and reputation – and provide peace of mind, ensuring you are covered in the event of accidents and other unforeseen events.

General liability insurance is one of the most common types of commercial insurance available. General liability insurance is considered the fundamental business insurance policy all companies should have. Businesses of all sizes can benefit from these protections, including startups, mom-and-pops, franchises, as well as mid-sized and large corporations.

What Protections Are Available?

There are numerous risks companies commonly face while conducting their day-to-day business. General liability policies cover claims from customers or clients, vendors, contractors, competitors, and other businesses. Basically, a general liability policy covers claims against your business from anyone other than employees at your company.

The following are the primary protections available with general liability insurance:

Property Damage: This involves covering you against claims of damage to business or personal property. For example, damage caused by your business products or operations (including during deliveries or on-site work) at a property you've rented, a customer's home or business location, or a neighboring building and landscaping.  

Bodily Injury: You're covered for injuries sustained by customers or other third parties. Most commonly, bodily injury claims involve slip-and-falls on your business premises – but may also include bodily harm due to faulty products or accidents caused by your business operations.

Lawsuits & Liability: This covers legal claims made against your business – such as lawsuits claiming property damage, bodily injury, or advertising injury (e.g., false advertising, copyright infringement, plagiarism). General liability insurance may also protect you against claims of slander, libel, and other types of defamation. A good legal defense is expensive, but its costs (including settlement or judgment awards) are covered by the policy.

Keep in mind your specific coverage and limits will vary, depending on the policy terms you select. Also, each business insurance policy can be customized to meet the unique needs of your business and address the risks prevalent in your specific industry.

What’s Not Covered

The most notable exclusion in a general liability policy are claims made by employees against the business. A general liability policy also will not cover damage to your business property (this is covered by a commercial property policy), or damages due to mistakes or errors made by the business or its employees (this is covered by an errors and omissions policy).

Thus, business owners often stack their general liability policy with other types of business insurance protections, such as:

• Commercial auto insurance

• Cyber liability insurance

• Business interruption insurance

• Professional liability (errors and omissions) insurance

• Builders' risk insurance

Business Insurance for Business Owners

To protect your business and livelihood, you'll want important protections only available in a general liability policy. Consult a trusted business insurance professional who can help steer you toward the right type of business insurance needed to protect you and your company.

Call The Windward Insurance Agency, at (866) 231-2433 to find out more about general liability insurance, as well as other types of commercial (business) insurance..