General Liability Insurance

Business owners and contractors need general liability (GL) insurance to safeguard their financial health. A single accident could lead to a lawsuit that could put you out of business unless you have adequate liability coverage in place. GL insurance provides protection from a variety of claims that could arise from business operations, including bodily injury, property damage, and personal injury.

What General Liability Insurance Covers

General liability coverage may be included in a business owner’s policy (BOP) or written as stand-alone coverage. It can protect your business from a number of risks, including property damage, bodily injury, damage to rented premises, medical payment, advertising errors, and harm to reputation.

Property Damage and Bodily Injury

This coverage helps protect against claims alleging bodily injury or property damage caused by your business operations or products.

Damage to Rented Premises

If your business is occupying rented premises, GL insurance can provide protection against damage to the premises caused by fire, lightning, or explosions.

Medical Payments

If a person is injured on business premises, general liability insurance can help protect against claims for costs of medical treatment.

Advertising Errors

This insurance can protect your business against claims associated with advertising your goods, services, or products.

Harm to Reputation

GL insurance can provide protection against claims of slander, libel, wrongful eviction, malicious prosecution, and violation of the right of privacy.

General Liability Insurance Costs

The cost of general liability coverage for your business is affected by a number of factors, including:

• Type of business
• Number of employees
• Level of risk exposure
• Location of business

Some businesses, by their very nature, have higher risk exposure than others. Our agent at General Insurance in San Fernando, California, can help you obtain complete general liability coverage for your business, and we focus on finding the best level of coverage at the lowest possible rates.

 

What Does General Liability Insurance Cover?

General liability covers a lot of common issues that you might run into, particularly if you work on client properties or interact with customers on a day-to-day basis. Basically, this essential insurance policy covers bodily damage, property damage, and even reputation damage that were caused by your business.

Why do I need General Liability Insurance?

As a small business owner, you may be legally responsible if another person gets hurt or if their property is damaged while at your business or because of something you did. Make sure your business is properly protected against risks.

Here are a few scenarios to help give you a better idea of what General Liability Insurance covers:

Bodily Damage
You’re a general contractor who has been called to a client’s house to perform roof repairs. You’re up on the second story roof, working away when suddenly a pile of shingles slips off the roof and falls on your client, who unfortunately happened to be passing by. The client’s okay, but he had to go to the hospital to get checked out. As a result, you’ve ended up with a pretty large medical bill that you’re responsible for.
That’s where general liability insurance steps in. Depending on your policy limit, this coverage can cover the cost of your customer’s medical bills. It can even cover the cost of a lawsuit if your client decides to sue you for pain and suffering.

Property Damage
You run a successful cleaning business, so you have a whole team of employees who go out to clean homes and offices. One of your employees accidentally uses the wrong kind of cleaner on a client’s oak table, causing significant damage. The client calls you and demands that you replace the table or reimburse her for the original purchase.
Without insurance, you’d be 100% responsible for that bill – and even if you refused to pay it, your client could take you to court. However, your general liability coverage may be able to pay out the costs to your client, even if she decides to sue your business for property damage.