When it comes to protecting your business from potential lawsuits and damages, having the right insurance coverage is crucial. General liability insurance is one of the most common types of insurance policies for businesses. However, many business owners are left wondering if general liability provides full coverage. In this article, we will dive into the specifics of general liability insurance to help you better understand its coverage limitations and benefits.
To begin with, it is important to understand that general liability insurance is not a one-size-fits-all policy. While it provides broad coverage for many types of claims, it does have certain limitations. General liability insurance is designed to protect businesses from claims related to bodily injury, property damage, and advertising injury. However, there are certain types of claims that are not covered by general liability insurance, such as employee injuries or professional errors and omissions.
What Does General Liability Insurance Cover?
Let’s take a closer look at the specific types of claims that general liability insurance covers:
- Bodily Injury: This type of coverage protects your business if someone is injured on your property or as a result of your business operations.
- Property Damage: If you or one of your employees damages someone else’s property, general liability insurance can help cover the cost of repairs or replacement.
- Advertising Injury: This type of coverage protects against claims of slander, libel, copyright infringement, and other forms of advertising-related injury.
- Legal Costs: General liability insurance can also help cover the cost of legal fees and settlements if your business is sued.
What Does General Liability Insurance Not Cover?
While general liability insurance provides broad coverage, there are certain types of claims that are not covered:
- Employee Injuries: If one of your employees is injured on the job, you will need workers’ compensation insurance to cover their medical bills and lost wages.
- Professional Errors and Omissions: If your business provides professional services, such as consulting or accounting, you will need professional liability insurance to protect against claims of negligence or errors.
- Intentional Acts: If you or one of your employees intentionally causes harm to someone else, general liability insurance will not cover the cost of legal fees or settlements.
- Property Damage to Your Own Business: General liability insurance only covers property damage to someone else’s property, not damage to your own business property.
So, is general liability insurance full coverage? The answer is no. While it does provide broad coverage for many types of claims, it does have certain limitations. It is important to understand what general liability insurance covers and what it does not so that you can make an informed decision about the insurance coverage your business needs. To ensure that your business is fully protected, you may need to supplement your general liability insurance with other types of insurance, such as workers’ compensation or professional liability insurance.