What is General Liability Insurance?
General Liability (GL) provides insurance protection for a company’s assets, financial obligations, legal defense, and any settlements or judgments awarded to an injured party.
If someone comes to your place of business and is injured, a general liability policy could cover their medical costs. If someone else’s property is damaged and you are found to be responsible, the repair or replacement cost could be covered. And if someone’s reputation is damaged by something you or an employee said or wrote about them, the associated costs could be covered.
It may also include claims for copyright infringement, false or misleading advertising, or libel and slander. If a patron is injured in some way in the course of doing business with your company, your general liability insurance will provide coverage.
What is Commercial General Liability Insurance?
Commercial general liability (CGL), also known as general liability insurance, is a business insurance policy that provides coverage for personal injury, bodily injury and property damage to third-parties sustained as a result of business operations, products or services. It also covers injuries that occur on the business’s property. While considered to be a comprehensive insurance policy, it does not cover 100% of the risks that a business may encounter during its lifespan. Many companies choose to purchase additional insurance, such as that which protects against employment practice liabilities like discrimination and wrongful termination.
What does General Liability Insurance cover?
General liability covers property damage, claims of bodily injury and any associated medical costs, as well as electronic data liability and damage sustained to a third-party property. Libel and slander are commonly covered as well. If your business is sued, you can use general liability insurance to cover legal fees and settlements. Advertising injury, attorney fees, court costs and administration fees typically fall under general liability insurance, too.
All coverage types:
- Bodily injury
- Damage to third party property
- Personal injury
- Advertising injury
- Electronic data liability – dependent on industry
- Medical expenses
- Defense costs
- Actions of your full-time employees and temporary staff
- Supplemental payments
Is Product Liability coverage a part of General Liability insurance?
This can be very subjective. While most GL coverage is inclusive of product liability coverage, the extent of the coverage varies depending on the product. Clients with an incorporated product liability coverage can protect their businesses from any claims of physical harm by their product or service. In such instances, the GL cover will cater for any resulting legal expenses.
Is Cyber Liability insurance a part of General Liability insurance?
General liability insurance is independent of the cyber insurance policy.
Is General Liability insurance required by law?
In order to operate legally, there are a few types of insurances that businesses must have, including vehicle insurance (for businesses with company vehicles) and, in some states, workers compensation. However, it is not required by law that a business purchase general liability insurance. That said, general liability is highly recommended for all businesses. Should litigation occur, attorney fees and court costs can be inexplicably high—general liability insurance can cover your business against these and other financial burdens.
What is an additional insured on General Liability insurance?
An additional insured is any additional person or company that is added to the business’s general liability insurance policy. They are named on the certificate and must be different from the policyholder. While individuals are often named as additional insured, groups may also qualify for this title. The additional insured’s coverage is usually not as extensive as that of the policy holder. However, significant protection such as defense coverage and coverage for third-party lawsuits usually applies to additionally insured entities. Coverage for additional groups or individuals runs for as long as the additional insured is performing services for the policyholder.