General liability on a commercial insurance policy is to protect against financial loss such as property damage or bodily injury from negligence, personal injury, advertising injury, etc. This includes libel, slander, defamation of character, copyright infringement, and many other “damages”. Some of the ways this coverage would benefit a business owner are:
- Defense, court, and settlement costs
- Actual damages
- Judgments awarded by the court
- Investigation and attorney fees
- Bonds
- Medical expenses for non-employees (where workers comp is not applicable
The situations in which general liability would not extend coverage are:
- Auto accidents (commercial auto policy would have liability coverage)
- Employe injury (as mentioned above, this would be work comp)
- Professional liability (for your opinion, advice, service, etc is under more of an E&O coverage)
- Damages or injuries caused by intentional acts
General liability can typically be purchased as a standalone coverage or as part of a Business Owners Package (BOP) policy. This is one of the very most important coverages your business should have, especially given the increase in litigation in our society. You can avoid uncertainty in the event of a tragic situation by being protected now.
