General liability insurance, also known as business liability insurance or commercial general liability (CGL), is crucial for small businesses to safeguard themselves from various risks.
What it covers
- Bodily injury and property damage: This is the core coverage, protecting your business from claims of injury to customers or damage to their property that occurs on your premises or as a result of your business operations.
- Personal and advertising injury: This includes claims of libel, slander, copyright infringement, and other forms of reputational or advertising harm.
- Medical payments: This covers medical expenses for people injured on your premises, regardless of who is at fault.
- Products-completed operations: This coverage protects against claims of injury or damage caused by your products after they are sold or your completed work.
Why it's important
- Protects against lawsuits and claims: This insurance provides financial protection against the costs of legal defense, settlements, and judgments arising from covered incidents.
- Fulfills requirements: Many landlords, clients, and licensing bodies require businesses to have general liability insurance to secure leases, contracts, or licenses.
- Peace of mind: Knowing your business is protected from common risks allows you to focus on growth and operations.
Important exclusions
- General liability policies don't cover everything. Common exclusions include:
- Intentional acts: Damages or injuries caused intentionally by your business or employees.
- Employee injuries: These are typically covered by workers' compensation insurance.
- Professional errors or omissions: These are typically covered by professional liability or errors and omissions insurance.
- Pollution-related claims: Coverage for these may be available through endorsements or separate policies.
