Understanding Commercial General Liability Insurance

Risk management is an essential part of operations in the business world. Accounting for incidents, accidents or errors that impact others outside your company, such as customers and guests, is particularly critical. Commercial general liability insurance is an essential tool businesses can use to protect themselves from the financial consequences of incidents involving third parties.

What Is Commercial General Liability Insurance?

Commercial general liability insurance, often known simply as general liability insurance, is a policy that can help protect businesses from the financial repercussions of being responsible for other parties’ losses. The financial protections included in general liability insurance may transcend industry lines in terms of their importance, making a suitable policy a fundamental part of most companies’ coverage portfolios.

What Does Commercial General Liability Insurance Cover?

General liability insurance can typically cover the following types of incidents:

• Bodily injury liability—If a third party, such as a customer or client, is injured on your business premises or due to your business operations, general liability insurance can cover medical costs, financial losses and legal fees if your business is sued.
• Property damage liability—If your business or its employees are at fault for incidents that cause damage to a third party’s property, such as while working on their belongings or visiting their location, this insurance can cover repair or replacement costs.
• Personal and advertising injury—This can cover expenses and losses arising from accusations of inflicting personal injuries or reputational harm, such as libel, slander, copyright infringement, false advertising or invasion of privacy.

It’s important to note that while typically a core pillar of your company’s coverage portfolio, general liability insurance has limitations and should not be relied on to cover professional errors, automobile-related liabilities or losses involving your employees.

Why Do Businesses Need Commercial General Liability Insurance?

Given its multifaceted coverage for many common incidents that may be relevant to businesses of all sizes and sectors, general liability insurance should be a top priority. Consider the following benefits of having adequate coverage:

• Financial stability—The cost of a lawsuit can be devastating for a business, but general liability insurance can help cover legal fees, settlements and medical costs, protecting your business’s financial health.
• Credibility—Having suitable insurance may show your clients and customers you are reliable and safe to work with.
• Contract requirements—In many cases, commercial leases and contracts may require businesses to carry general liability insurance.

Learn More

At All Insurance Multiservices in Tucker, GA, our team is committed to helping your business fortify its financial security with optimal coverage solutions. Contact us today to learn more about commercial general liability insurance or to get a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.