Every business, no matter the size or industry, faces risks. One of the smartest moves you can make as a business owner is to protect yourself with general liability insurance (GLI). But what exactly does a general liability policy cover? And how can it protect your business from costly surprises?
Let’s break it down.
General Liability Insurance: The Basics
General liability insurance is designed to protect your business from a wide range of third-party claims. These are claims made by people or entities outside your company—clients, customers, vendors, or even random visitors.
Here’s what’s typically included:
1. Bodily Injury
If someone is injured at your place of business or because of your business activities (even off-site), your GLI policy can help cover:
Example: A customer slips and falls on a freshly mopped floor in your store.
2. Property Damage
This covers accidental damage to someone else’s property caused by your business operations or employees.
Example: Your employee breaks a client’s window while delivering goods. Your GLI can cover the repair or replacement.
3. Personal and Advertising Injury
This part of your policy protects against claims like:
Example: A competitor claims you copied their slogan or ad campaign—your GLI helps with legal costs and possible settlements.
4. Legal Costs
Your policy typically includes coverage for:
What’s Not Covered?
While general liability offers broad protection, there are specific things it won’t cover. These often require separate policies:
Employee Injuries → Covered by Workers’ Compensation Insurance
Damage to Your Own Property → Covered by Commercial Property Insurance
Professional Errors → Covered by Professional Liability (E&O) Insurance
Intentional Acts or Criminal Behavior
Do You Really Need General Liability Insurance?
If you:
…then yes—you absolutely need GLI. It’s not just protection; it’s peace of mind.
Final Thoughts: Get The Right Coverage with THAgency
At Toby Hansen Agency, we don’t offer one-size-fits-all coverage. We search nearly 100 insurance carriers to match your business with the best possible protection—at the best possible price. Whether you’re a startup, contractor, retail shop, or professional service provider, we’ll make sure your general liability insurance actually works when you need it.
