If you own a business, general liability insurance isn’t optional — it’s foundational. Yet one of the most searched questions on Google is:
“What is included in a general liability policy?”
Let’s break it down clearly so you know what you’re actually buying.
What General Liability Insurance Typically Covers
A general liability (GL) policy is designed to protect your business from third-party claims involving bodily injury, property damage, and certain legal issues.
1. Bodily Injury
If someone is injured because of your business operations, your policy can help cover:
- Medical bills
- Legal defense costs
- Settlements or judgments
Example: A client slips on a wet floor in your office.
2. Property Damage
If you or your employees damage someone else’s property, this coverage can respond.
Example: You’re installing equipment at a customer’s location and accidentally damage their flooring.
3. Personal & Advertising Injury
This includes:
- Libel or slander
- Copyright infringement
- Advertising mistakes
If someone claims your marketing caused financial harm, this portion may apply.
4. Legal Defense Costs
Even if a claim is groundless, your policy typically covers attorney fees and court costs. And legal defense alone can cost thousands — fast.
What General Liability Does NOT Cover
Here’s where many business owners get caught off guard.
General liability does not cover:
- Professional mistakes (that’s professional liability)
- Employee injuries (that’s workers’ comp)
- Auto accidents (that’s commercial auto)
- Data breaches (that’s cyber liability)
- Damage to your own property (that’s property insurance)
This is why most businesses need a combination of coverages — not just one policy.
Why It Matters
Many contracts require general liability before you can:
- Lease space
- Work with larger clients
- Bid on jobs
- Join vendor networks
But more importantly, one claim could financially cripple a small business without coverage.
If you’re not sure whether your current policy actually protects you the way you think it does, that’s worth reviewing. CONTACT US