General liability insurance (GL), also known as business liability insurance, is essential for businesses to protect themselves from common risks that can arise in daily operations. This type of insurance is geared towards covering claims of injury, property damage, and other liabilities a business may face. Here’s a detailed overview of general liability insurance:

1. Purpose of General Liability Insurance

• Protection: Provides financial protection if a third party experiences bodily injury or property damage related to the business’s operations, products, or services.
• Industries: Relevant across nearly all industries, from retail and hospitality to manufacturing, construction, and consulting, as it mitigates general business risks.

2. What General Liability Insurance Covers

• Bodily Injury: Covers medical expenses, lost wages, and potential legal fees if a customer or third party is injured on the business’s premises or due to its operations.
• Property Damage: Covers repair or replacement costs if the business causes damage to a third party’s property (e.g., a contractor accidentally damaging a client’s building).
• Personal and Advertising Injury: Protection for claims of libel, slander, copyright infringement, or misappropriation in the course of advertising or other business communications.
• Legal Defense Costs: Includes attorney fees, court costs, and settlements or judgments up to the policy limit if a claim goes to court.

3. Additional Components

• Products-Completed Operations: Covers claims related to damages caused by products or services once they have been sold or completed. For instance, a product that causes harm after a customer has taken it home.
• Tenant’s Legal Liability: Often included for businesses renting space, this covers accidental property damage to the rented property that could be caused by negligence (e.g., a fire or flood started by the business).
• Medical Payments: Provides a no-fault benefit for minor injuries to third parties on the business premises, which can help prevent costly lawsuits by offering immediate coverage for medical expenses.

4. Industries That Commonly Need General Liability Insurance

• Retail and Hospitality: For businesses that interact with the public, like stores and restaurants, GL insurance is crucial as customer injuries or property damage can be common.
• Contracting and Construction: Protects against property damage or bodily injury claims that might arise while working on job sites or client properties.
• Professional Services: While general liability insurance won’t cover professional errors (that’s for professional indemnity insurance), it’s still beneficial as clients may visit offices or workplaces.
• Manufacturers and Distributors: Provides coverage for claims related to product liability and potential damages that occur after a product leaves the facility.