What General Liability Insurance Covers

As a business, you must account for many risks and exposures even amid ordinary and routine tasks. Certain accidents, errors and other incidents may be inevitable regardless of your employees’ experience levels or your organization’s commitment to safety. The financial ramifications of these situations can be particularly precarious if an incident affects parties who are not part of your company, as high-profile lawsuits and costly litigation may follow.

Fortunately, general liability insurance can provide your business with a versatile and robust safety net that may play a critical role in limiting the out-of-pocket losses and expenses arising from incidents affecting third parties. However, to make the most of this type of coverage, your organization must have an in-depth understanding of how it works.

How Can General Liability Insurance Protect My Organization?

Also known as commercial general liability (CGL) insurance, this type of coverage is among the most frequently purchased among businesses in the United States. This is partly due to the importance of the protections typically included in this type of insurance, which transcends industry lines and other unique characteristics, making a CGL policy a valuable investment for many commercial enterprises.

Like many types of coverage, general liability insurance establishes a contractual agreement between your business and its insurance company. By purchasing a policy and maintaining its coverage through regular (e.g., monthly or annual) premiums, you can file a claim against it following incidents from which your business might otherwise accrue significant out-of-pocket losses.

While the exact capabilities of these policies may vary, comprehensive general liability insurance can provide financial protection from many common incidents that may affect your organization, such as the following:

• Bodily injuries—If a third party, such as a guest, customer or passerby, is injured on your premises or otherwise due to your operations, this coverage may help pay for their medical expenses and other financial losses.
• Property damage—CGL insurance may also provide financial assistance if your business is at fault for an incident that damages another party’s property, such as that of a client, customer or neighbor.
• Personal and advertising injuries—This component of general liability insurance can help pay for legal expenses and other financial losses if your company is accused of personal injuries or causing reputational harm, such as via slander or libel.

Even if you are eventually absolved of wrongdoing, the cost of responding to lawsuits and defending your reputation can have significant and far-reaching financial ramifications. Without appropriate commercial general liability coverage, your organization may lack the resources to set the record straight or absorb the monetary consequences of a single mishap.

We’re Here to Help

At Affiliated Agency of Ocala, we have over 30 years of experience helping businesses, families and individuals address their coverage needs. We understand that general liability insurance coverage is a critical component of appropriate loss control measures and have the knowledge and resources to compose specialized solutions, such as general liability insurance for LLCs and general liability insurance small business policies. Contact us today to learn more.

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.