As a business owner, you need to protect your business if the business is to be sustainable. Companies face financial risks that may cause losses, especially if the expense is unexpected. For instance, if a client gets injured on your business premises and you're liable, you may have to compensate them. You can protect your enterprise by purchasing a general liability insurance policy. However, before buying the insurance, you should understand the coverage scope. So, what coverage is included in general liability insurance?
General Liability Insurance Policy Coverage
Usually, general liability insurance includes the following:
- Bodily injuries. When a client falls and sustains an injury while on your commercial premises, you're responsible for their medical expenses. This insurance helps with those expenses
- Property damage. If you deliver on-site services, you may damage a customer's property. For instance, your staff may accidentally break a client's windows while working. The policy may fully or partially cover the required repair or replacement costs.
- Advertising injury. This happens when your enterprise defames an individual or company.
- Reputational harm. This occurs when you make remarks during an interview that negatively influence another company.
- Copyright infringement. If you use the work of another person, such as photos in an advertisement, without their consent, the content owners can sue you.
A general liability insurance policy can protect your enterprise against these risks.
The Coverage That General Liability Insurance Doesn't Offer
Understand that general liability insurance won't shield your business against all potential risks. The following are examples of what the coverage typically doesn't cover:
- Commercial car accidents. These are accidents that members of your company cause. In this case, commercial car insurance would help.
- Mistakes in service provision. When a customer charges you for errors you make while offering services, professional liability coverage is ideal for covering legal expenses.
- Commercial property damage. You probably require business property insurance when your commercial property gets damaged.
- Worker injury. If your workers get injured, workers' compensation insurance may compensate the workers.
- Claims above your coverage maximum. If you need to pay damages exceeding your business coverage, commercial umbrella coverage is necessary.
- Illegal activities. Usually, illegitimate transactions carried out in your enterprise purposely aren't covered by insurance.
You should get policies that explicitly cover these claims for ultimate business protection.
General liability insurance may cover property damage, defamation, bodily and advertising harm, and copyright violation. Consider purchasing a general liability insurance policy to defend your enterprise against these risks. Anything outside this coverage needs separate insurance.