What Is General Liability Insurance | General Liability Insurance Education

Having clarified the concept of general liability insurance and its key components, let’s further explore its coverage. General liability insurance helps cover legal defense costs and settlements for covered claims, thereby providing financial protection for your business. It protects businesses against claims arising from bodily injury or property damage due to business operations, products, or completed work.

Whether a customer suffers an injury on your business premises or through interaction with your business or employees, business liability insurance, also known as general liability insurance, covers the legal costs and settlement costs associated with third-party property damage and bodily injuries. Moreover, it extends to personal and advertising injuries, covering legal expenses and damages from lawsuits over copyright infringement, libel, or slander.

On-Premises Incidents

Accidents can occur anywhere, and businesses are no exception. General liability insurance provides coverage for accidents that occur on your business premises. Common incidents like slips, trips, and falls are covered by general liability insurance.

Consider a scenario where a non-employee suffers an injury due to operations on your business premises, in such cases, Coverage C offers no-fault coverage for their medical expenses. This not only takes care of the injured party’s medical bills but also showcases your company’s sense of responsibility, further strengthening your business reputation.

Off-Premises Operations

What about incidents that occur away from your business premises? Here’s where off-premises operations coverage comes into play. General liability insurance includes coverage for liability claims originating from a business’s products or completed operations that occur away from the business location.

Manufacturers, retailers, contractors, and service providers particularly need this coverage due to potential claims stemming from harmful or damaging products, or work conducted off-site. To be covered under off-premises operations insurance, a claim must be related to the business’s products or services, with the incident occurring after the product or service has been provided, and it must involve bodily injury or property damage.

Personal and Advertising Injury

Personal and advertising injury coverage is another important aspect of general liability insurance. It protects against claims alleging harm to a person’s reputation or rights, stemming from a business’s advertising or related activities. The coverage includes protection against claims of:

  • Libel

  • Slander

  • Wrongful eviction

  • False arrest

  • Invasion of privacy

Advertising injury protection extends to the following offenses:

  • Copyright infringement

  • Misappropriation of ideas or style of doing business

  • Negligence, misrepresentation, or inaccurate advice that may lead to personal injury claims

These offenses are covered under liability insurance. Despite the complexity of these exclusions, comprehending them is vital for businesses to ascertain their complete protection.

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