A General Liability insurance policy is one of the most essential coverages for businesses and contractors.
It not only protects your company financially but also builds credibility and trust with clients and partners.
Understanding what it covers and what it does not cover is key to protecting your business properly.
What Does General Liability Insurance Typically Cover?
A General Liability policy protects you, your business, and your employees against claims related to bodily injury or property damage to third parties, including:
✔️ Lawsuits, investigations, and settlements
This coverage may include:
- Insurance company investigations.
- Attorney and legal defense fees.
- Court judgments and settlements.
- Medical expenses for injured third parties.
- Bonds and other legal-related costs.
✔️ Third-party damages
Covers bodily injury or property damage arising from:
- Accidents occurring during contracted work.
- Day-to-day business operations.
- Products or services provided by the business.
✔️ Additional protections
Depending on the policy, coverage may also include:
- Advertising injury, such as copyright infringement or improper use of images or slogans.
- Limited alcohol-related incidents, provided your business is not involved in the manufacture or sale of alcohol.
What Does General Liability Insurance NOT Cover?
General Liability insurance does not cover every risk, and additional policies may be required.
❌ Employee injuries
Injuries sustained by employees are not covered under General Liability.
These require Workers’ Compensation insurance, which is mandatory in many states.
❌ Professional errors
If your business provides professional advice, consulting, or specialized services, you may need Professional Liability or Errors & Omissions (E&O) coverage.
❌ Auto-related accidents
General Liability does not cover vehicle accidents related to business operations.
A separate Commercial Auto Insurance policy is required.
❌ Intentional acts
Damage caused by intentional or premeditated acts is not covered.
For example:
- If an employee intentionally assaults a customer, the policy will not apply.
- If the employee acts in self-defense or to protect the business from a crime, coverage may apply for resulting third-party damages.
Protect Your Business the Smart Way
General Liability insurance is a strong foundation, but true protection comes from the right combination of coverages.
At Calidad Insurance, we help you evaluate your risks and build a customized insurance solution that protects your business today and in the future.
Do you need more information about any of our insurance policies? 👉 Follow this link