What Does General Liability Insurance Cover?
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Return To: North Carolina General Liability Insurance – The Ultimate Guide
General Liability Insurance protects businesses from lawsuits. covers all sorts of mishaps, making it one of the most comprehensive forms of legal protection available to small businesses.
There are several primary coverages provided by General Liability Insurance policies.
First and foremost, Bodily Injury Coverage helps protect you in the event that an employee or customer gets injured on your premises due to negligence. It will also include coverage for litigation costs and associated medical bills if necessary.
Property Damage Coverage applies when your business is held responsible for any kind of physical damage caused by your product or service – this includes items such as furniture, fixtures, equipment, and other materials used in day-to-day operations.
Personal & Advertising Injury provisions provide defense against claims made against your company’s intellectual property rights due to intentional misrepresentation or infringement acts such as libel/slander and copyright violation amongst others. It also covers damages resulting from false advertising practices usually brought about by competitors seeking financial compensation for losses incurred through false advertisement campaigns targeting their
In this article, we will answer the question “what does general liability cover” by exploring some of the primary coverages provided by a General Liability Insurance policy.
Bodily Injury Liability Coverage
General liability insurance protects you if somebody gets hurt and blames it on you. This type of insurance can cover a lot of different things that might come up from an accident that wasn’t your fault.
A General Liability Insurance Policy provides protection from claims for injuries that occur on the insured’s premises, during business operations, or due to products and services provided by the insured.
Bodily injury is one of the most common types of problems that general liability policies deal with. Bodily injuries are physical injuries that someone gets because another person did something bad on purpose, was careless, or didn’t do something they should have.
Examples of things that could happen that you might need insurance for are if you accidentally hurt yourself by slipping or falling if you get burned or cut while using something if a doctor hurts you while trying to help you if a dog bites you or another animal attacks you, and if someone hits you and hurts you on purpose.
If someone gets hurt and it was your fault, Commercial General Liability Insurance will cover it. But if you did something bad on purpose, General Liability Insurance will not cover it.
This policy also pays for medical expenses if someone gets hurt because of something that the policyholder did. Most of these policies will also pay for legal fees if somebody sues the policyholder because they got hurt. This may include court costs and fines if the policyholder is found responsible for the accident in court.
General Liability Insurance protects you from having to pay legal fees if someone gets hurt on your property and it was your fault.
There are things that happen that we can’t predict, like an employee making a mistake or bad weather causing someone to fall down the stairs. General Liability Insurance can help protect your business from these unforeseen events. This insurance will give you some level of financial security if something bad happens that you weren’t expecting.
Insurance Coverage For Property Damage
Property damage is defined as any physical injury or destruction to tangible property that has been caused by someone else not taking proper care.
General Liability Insurance covers businesses if they accidentally damage someone else’s property. This could be because of something they did wrong, like if their product is faulty or if there is an environmental accident.
General Liability Insurance can also help pay for repairs if you accidentally break something that belongs to someone else, even if it was not your fault.
Some examples of property damage that could be claimed for reimbursement are things like replacing windows that were broken by vandals or paying for repairs after an employee accidentally starts a fire at a customer’s house.
Personal And Advertising Injury
A personal injury claim happens when someone’s rights are invaded. This includes things like being arrested or put in jail without a good reason, being forced to leave your home, being charged with a crime you did not commit, or having something said or written about you that is not true and that violates your privacy.
Advertising injury is when someone hurts another person’s business with their own advertisement. This includes things like copying someone else’s work, using someone else’s ideas or pretending to be someone else.
In most cases, General Liability Insurance will cover any costs associated with defending against personal or advertising injury claims. This includes legal fees and any awards made against the business if its actions are found to be legally at fault.
There are some situations where General Liability Insurance may cover punitive damages if it is proven that the allegations are true. However, it is important to remember that General Liability Insurance does not cover anything done on purpose by the business or any punitive damages that are decided in a court of law.
Products And Completed Operations
Products and Completed Operations Coverage protects your company if a customer or other person is hurt or their property is damaged because of using your product or service. This coverage will protect you against any legal action taken against you if there is an accident caused by using your product or service. It may also cover the costs of medical treatment and lost wages resulting from the incident.
Completed operations coverage protects businesses that have done work for customers, like construction companies and auto repair shops. If something goes wrong with the work they did, General Liability Insurance will cover any resulting injury or property damage up to the limits in the policy. This can include events like faulty parts installed by the contractor, improper installation or maintenance, errors in design, and defects in materials used for construction projects.
Premises Liability Coverage
Premises liability coverage is designed to provide protection against claims made in connection with accidents or injuries that occur on your property. Typical scenarios could include slips and falls, dog bites, fires, explosions, and other risks that can put visitors at risk. This type of insurance helps protect your business from potential legal repercussions and costly settlements.
In most cases, premises liability coverage provides financial protection if someone is injured while visiting or on the property, including paying for medical bills and legal costs associated with a lawsuit as well as damages awarded to the injured person. Additionally, these policies also typically cover any lost income due to a business closing temporarily or permanently in the event of an accident or injury.
It’s important to note that not all general liability insurance policies include premises liability coverage so it’s important to double-check when you are purchasing your policy. Some policies may have limited or no coverage available so it’s always best to speak with your insurance agent about what type of protection you need for your specific situation.
Medical Payments Coverage
Medical payments coverage provided by a general liability insurance policy protects businesses from having to pay for medical treatments related to accidents that occur on their property. This type of coverage will pay for medical bills and related expenses when someone is injured on business premises, including customers, & vendors. It may also cover physical therapy and hospital visits required after an accident occurs.
It doesn’t just cover accidental injuries or illnesses; it can also pay for expenses related to sicknesses caused by food poisoning or infectious diseases contracted on-site.
What Is Not Covered In A Commercial General Liability Policy?
CGL insurance is a type of insurance that helps to protect businesses from financial losses. This happens when someone gets hurt or their property is damaged because of something related to the business. However, there are some things that this type of insurance does not cover and these are called exclusions.
The first major exclusion on CGL policies is intentional acts and criminal activities. This means that any harm caused by intentional acts is not covered by the policy and this includes criminal activities such as assault, theft, and vandalism. Similarly, damages caused by an employee’s negligence are also excluded from General Liability Insurance coverage.
Professional services are also excluded from General Liability Insurance coverage, meaning any errors or omissions in professional services provided by your business won’t be covered under General Liability Insurance.
Pollution is also excluded from General Liability Insurance coverage, meaning any claim resulting from pollution caused by your business activities won’t be eligible for reimbursement under General Liability Insurance.
Overall, General Liability insurance provides great protection for businesses but it’s important to know what is excluded from the policy before signing up for coverage.
Claims involving intentional acts, professional services, and pollution are all typically excluded from General Liability policies. Knowing what isn’t covered can help you make informed decisions about risk management strategies and what additional forms of coverage may be needed.
The Final Verdict – What Does General Liability Insurance Cover?
General liability insurance is important for businesses of all sizes. If you have customers, clients, or employees, you need to make sure you’re protected in case something happens. In most cases, it’s relatively affordable and can give you peace of mind knowing that you’re covered. Give us a call today to get a quote on general liability insurance for your business.
