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General Liability Insurance

What Is General Liability Insurance?

A general liability (GL) insurance policy provides coverage to protect you and your business from a wide range of claims, including property damage, bodily injury, and personal injury, that may arise due to normal business operations. It may also cover damages related to products or services your company provides to your customers.

Who Should Have GL Insurance?

All businesses should have such an insurance policy in place at all times to cover potential claims. This will protect the company, its owners, and its employees in case something happens. A single accident on the job site or at the office can cause a lawsuit judgment the business may not be able to cover.

How Does a GL Policy Work?

The insurance policy outlines how much the insurance company will pay against a claim. Let’s say you have $250,000 in coverage. A customer sustains an injury at one of your job sites and files a lawsuit. The policy will cover up to $250,000 for that particular claim and related legal costs. If the total of the claim exceeds the $250,000 mark, your company is liable for the remaining balance.

If an event occurs that might trigger a claim, it is important to contact your insurance company or agent as soon as possible. A timely report will capture the details of the incident so the claim can be processed as soon as possible. It will also protect you in case the claim goes to court.

What Are the Different Types of GL Coverage?

The term “general” describes this type of policy quite well. The policy covers a wide range of potential liability issues a commercial operation might face during normal operations.

If a business needs additional coverage or specific coverage for a particular area of operations, more specific policies are available. They fall beyond the scope of the general policies.

What are the Major Benefits of GL Coverage?

It protects your company financially
It demonstrates responsibility
It shows you want to stay in business
It can help secure more client contracts