What Does General Liability Insurance Cover?
General Liability Insurance can cover the expenses related to non-employee injuries that happen on your property, damage you cause to someone's property, and advertising mistakes. In other words, it can cover some of the common lawsuits that arise from everyday business activities, such as renting property, working with clients, and interacting with customers.
If your business is sued and the lawsuit is covered by your General Liability policy, the insurance company can help pay for legal expenses, including attorney's fees and settlements.
Keep reading for specific examples of what General Liability Insurance can and can't cover.
So, What Does Business Liability Insurance Cover Exactly?
Let's start with some clarification. General Liability Insurance is just one kind business liability insurance. But it is an important one. It takes care of what’s known as “third-party lawsuits,” meaning lawsuits brought by anyone who isn’t employed by your business: vendors, customers, your landlord, etc.
But General Liability Insurance only covers certain third-party lawsuits, including those triggered by the following events:
Telekinetic teens or killer clowns probably won't besiege you, but what about that loose bit of carpet? That could cause a $100,000 bodily injury lawsuit if a deliveryman trips over it and injures himself. That crowded electrical socket? A $250,000 property damage lawsuit if it causes a fire in your landlord’s building.
Fortunately, General Liability Insurance has you covered when the unexpected strikes.
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