What is coverage A on general liability insurance?

Coverage A in a General Liability Insurance policy is the part that protects your business against claims of bodily injury or property damage caused to others. It’s the core component of the policy — the one that helps cover legal costs, settlements, and judgments when your business is found liable for physical harm or damage.

What Does Coverage A Include?

Coverage A applies when:

• A customer slips and falls in your store.

• Your employee accidentally damages a client’s property.

• A product you sell causes injury or damage.

In these cases, Coverage A helps pay for:

• Medical expenses

• Legal defense costs

• Settlement or judgment amounts

Without this protection, your business would need to cover these expenses out of pocket — which can be financially devastating.

What’s Not Covered Under Coverage A?

Coverage A doesn’t cover:

• Intentional acts

• Employee injuries (these fall under workers’ compensation)

• Professional errors or omissions (covered by professional liability insurance)

• Damage to your own business property

To be fully protected, businesses often combine Coverage A with other forms like Coverage B (Personal and Advertising Injury) and Coverage C (Medical Payments).

Why Coverage A Matters for Your Business

Every business, no matter how small, faces potential liability risks. One lawsuit can cost tens or even hundreds of thousands of dollars. Coverage A ensures you don’t lose your business over a single mistake or accident.

It’s not just a legal requirement in many cases — it’s your financial safety net.

How to Choose the Right Coverage A Limit

When selecting your policy limits, consider:

1. Industry risk level – Construction has higher exposure than consulting.

2. Business size and revenue – Larger operations often face bigger claims.

3. Contract requirements – Many clients require proof of coverage before working with you.

An experienced insurance agent can help you find the ideal balance between protection and affordability.

FAQs About Coverage A in General Liability Insurance

1. Is Coverage A required for all businesses?
While not always mandatory by law, many contracts, landlords, and clients require proof of general liability coverage — including Coverage A — before doing business with you.

2. What’s the difference between Coverage A and Coverage B?
Coverage A handles physical injuries and property damage, while Coverage B covers non-physical harms like libel, slander, or false advertising.

3. How much Coverage A do I need?
Most small businesses carry at least $1 million per occurrence and $2 million aggregate, but your needs may vary based on your industry and risk exposure.

4. Does Coverage A include employee injuries?
No, it only applies to third parties. Employee injuries require workers’ compensation insurance.

Final Thoughts

Coverage A forms the foundation of general liability insurance. It’s essential for protecting your business from unexpected accidents that could lead to expensive lawsuits or settlements.

Are you facing potential liability or want to ensure your business is protected against claims for compensation for damages? Fill out the form below to get expert guidance and a tailored insurance solution from our network of carriers.
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