In today’s litigious society, even small mishaps can result in large lawsuits. That’s why general liability insurance, along with property and worker’s compensation insurance, are essential for most companies. Liability insurance protects the assets of a business when it is sued for something it did (or didn’t do) to cause an injury or property damage. Also included are premises and operational liability, medical payments and contractual liability. General liability insurance can be purchased separately or as part of a business owner’s policy.
Liability insurance covers injuries that you cause to third parties. Covered liability claims include bodily injury, property damage, personal injury, and advertising injury (damage from slander or false advertising). If someone sues you for personal injuries or property damage, the cost of defending and resolving the suit would be covered by your liability insurance policy. A general liability policy will cover you for common risks, including customer injuries on your premises. Customer accidents account for the majority of all liability claims and of these, slips, trips and falls account for over 60%.
Potentially general liability coverage claims may include:
- a customer has a slip and fall accident on your premises and sues you for negligence
- you throw a cigarette in a trash can that starts a fire that causes $100,000 of damage to the landlord’s building
- your programming or code that controls a machine malfunctions resulting in bodily injury or property damage to a third party
- you make a disparaging remark about a competitor and you are sued for slander
More specialized varieties of liability insurance include: