What does General Liability Insurance cover?

July 22, 2016

Liability coverage helps protects you. General liability insurance is designed to cover defense costs, legal fees and judgments and settlements against you when you are being sued. Having general liability means you are protected against paying for those damages out of pocket. General liability insurance covers the following main areas.

Bodily Injuries

Examples:

A client trips over a loose floorboard at your office and sues you. 

You have gotten into an accident and injured someone. 

Covers another person’s physical injuries, pain and suffering in which you are liable. These expenses including medical expenses (hospital bills, rehabilitation, long-term nursing care), lost income compensation, and legal fees

*It’s important to note the limits of your bodily injury liability insurance, or the maximum amount you are covered under the insurance if you do need to use it. The two types of limits are split limits or a single combined limit.

Property Damages

Example:

Your vehicle got into an accident damaging not only another person’s car and house. 

Covers damages to another person’s vehicle or other belongings in which you are liable, such as structural damage, stationary objects repairs or replacement, vehicle repairs or replacement and asset protections.

Personal injuries and advertising injuries

Examples:

You have used trademarked slogan in your advertisement and the company is now suing you for copyrights infringement. 

One of your employees told your clients false information about your competitor’s company. Your competitor found out and is now suing you for slander. 

Covers damages of another person’s goods or services of libel, slander, invasion of privacy, copyright infringement, and misappropriation of advertising ideas due to your advertisement. Personal injuries covers any offense your business has done doing anything other than advertising, such as false arrest and wrongful evictions.

Contributor: Lilian Chan

Sources: AllState, IRMI and Progressive
All Images from Google