General liability insurance is a type of insurance that provides financial protection for businesses and organizations in the event that they are held liable for damages or injuries caused to third parties. This coverage is often referred to as "commercial general liability" (CGL) insurance.
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The coverage typically includes protection against claims of bodily injury, property damage, and personal injury (such as defamation or false arrest) that arise from the business's operations, products or services, or the business's premises or operations. This coverage can be especially important for businesses that have frequent interaction with the public, or that might be at risk of causing injury or damage to others.
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General liability insurance policies generally have several types of coverage:
- Bodily Injury Liability, which covers costs associated with injuries to people caused by the policyholder or their employees.
- Property Damage Liability, which covers costs associated with damage to third-party property caused by the policyholder or their employees.
- Personal and Advertising Injury Liability, which covers things like defamation, copyright infringement, and invasion of privacy.
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A general liability policy typically includes a per-occurrence limit, which is the maximum amount the insurer will pay out for any one claim, and an aggregate limit, which is the maximum the insurer will pay out over the life of the policy. Some policies may also offer additional endorsements to provide more specific coverage in certain areas.
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It is important for business owners to carefully review their policy to understand what is and is not covered, and to make sure that the coverage meets their needs.
It's also a good idea for business owners to regularly review their coverage and update it as needed, as the nature of their business, the area of operation and their needs may change over time.
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It's worth noting that General liability insurance is just one type of insurance coverage that businesses may need, it's important for business owners to understand their exposures and potential risks and to explore other types of coverage as well such as workers compensation, professional liability, and business interruption insurance.