What does general liability insurance cover?

General liability insurance is designed to protect businesses against claims made by third parties for bodily injury and property damage. This type of coverage is essential for any business, as it helps cover legal costs and any potential settlements or judgments that may arise from such claims.

For example, if a customer slips and falls in a store, resulting in injury, the business owner would be liable for the medical expenses and potentially for lost wages due to that injury. General liability insurance would help cover those costs. Similarly, if a business accidentally damages a client's property during a job, this insurance would cover the cost of repairs or replacement.

The coverage offered by general liability insurance is specifically tailored to address these third-party claims, which is why it is often seen as a crucial component of a business's insurance portfolio. Understanding this function can help business owners recognize the importance of having adequate general liability insurance to mitigate risks associated with everyday operations.