What General Liability Insurance Covers
As a business owner, you have many vulnerabilities. You deal with the economy’s whims, changes in your industry, and potential loss due to several potential liabilities. While you can’t fix the economy, you can protect yourself with the right insurance. General liability can cover small businesses and the self-employed and provide financial protection from some of the most common risks in business, including:
- Injuries to people who are not employees
- Damage to someone else’s property
- Accusations of libel and slander
Accidental Injuries
You can’t always avoid an accident. And some accidents cause physical harm to people who come into contact with you, your employees, and your business. If someone other than you or an employee gets hurt and your business is at fault, it is called “bodily injury.”
Example
You own a small grocery store. An employee leaves a toolbox out in the aisle, and a customer trips on it and hits their head on the concrete floor. This requires stitches, and they lose a week of work as they recover from their concussion.
While the amount and extent of coverage are determined on a case-by-case basis, depending on the policy you purchase, general liability insurance can help pay for the following:
- Medical expenses
- Loss of income
- Pain and suffering
Property Damage
Your general liability insurance policy will help pay for repairs or replacement costs for someone else’s property that you accidentally damaged. When choosing a general liability policy, look for one that includes significant and less severe accidents.
Example
You own a landscaping company. You didn’t see a small rock during your pre-inspection of a lawn you are mowing. When you drive over it with the mower, the stone goes flying and hits the client’s mini-van. You must pay for the repair and repaint of the vehicle at a certified dealer.
Copyright Infringement, Libel and Slander
This is a big category of ways you can be held liable for damaging your reputation, intellectual property, or breach of privacy. Any business could encounter this issue, especially in today’s highly-connected world where everyone has a public platform.
- General liability insurance can protect you from lawsuits arising from
- Breach of Privacy – Making public something that is private without permission, including photographs, letters, etc.
- Copyright Infringement – Using a person or business’s logo, imagery, tagline, etc.
- Defamation of Character – If you, an employee, or an authorized agent such as an advertiser, make untrue, adverse claims about a person or business that causes them reputational harm.
- Product Liability – If a product you manufacture or sell causes harm to a consumer
What Your General Liability Policy Will Cover
Medical payments
When someone (except for you and your employees) gets injured and asks you to pay for medical expenses, your liability policy will help.
Legal Fees & Defense Costs
Your liability policy will help with these charges when you need an attorney to defend your business in a lawsuit after a claim.
Get Peace of Mind
Protect yourself with adequate insurance. Contact the independent insurance agents at Hermann Insurance Services to find out what you need for coverage. We’re here for you!
