In short, general liability insurance protects businesses from general claims involving property damage and bodily injuries resulting from the company’s products, services, or operations. While this definition may sound straightforward, USMC Insurance, a managing general agent, explains that the coverage offered by commercial general liability insurance for contractors is much more nuanced than this. Here, the company outlines exactly what is covered by this commercial insurance policy.
A general liability policy could help a business stay afloat even if it caused a customer, client, or passerby bodily injury. These incidents commonly include slips and falls but can also include a client tripping over a contractor’s tools or something similar. In the event a bodily injury claim is filed against a small business, the general liability policy will cover the person’s medical expenses, ensuring the company doesn’t go under from these high costs.
In addition to bodily injury, business liability insurance covers claims related to property damage. If an employee causes an accident that results in broken property, such as a shattered window in a client’s home, the policy will cover the repair costs.
Finally, general liability insurance covers the legal expenses related to personal and advertising injuries. If a company sues another business for slander, libel, or copyright infringement, the policyholder can breathe easily, knowing that any legal defense costs and settlements will be properly handled.
Just as important as noting what is covered by general liability insurance is recognizing what is not covered. Business liability insurance will not cover employee injuries, car accidents, punitive damages, intentional acts, or employee mistakes. If policyholders have any questions about what is covered (or not covered) by their insurance, they should discuss the matter with their insurance company.
USMC Insurance recommends policyholders carefully read over their policies to ensure they understand what is and isn’t covered.