Property damage claims can pose significant financial risks to businesses. Whether it’s a customer’s belongings being damaged on your premises or an employee accidentally causing damage at a client’s site, these incidents can lead to expensive legal actions. General Liability Insurance (GLI) serves as a crucial safety net, helping to cover these unexpected events.
What Is General Liability Insurance?
General Liability Insurance protects your business from third-party claims, including:
Bodily Injury – If someone is injured on your premises or as a result of your operations.
Property Damage – Covers damage your business causes to someone else’s property.
Personal and Advertising Injury – Covers claims of slander, libel, or false advertising.
Property Damage Coverage: How It Works
GLI typically provides coverage for property damage in situations such as:
On-Site Incidents – If a customer’s property is accidentally damaged inside your business.
Off-Site Operations – If an employee damages a client’s property while performing work.
Legal Costs – Includes attorney fees, court expenses, and settlements for covered claims.
Common Real-Life Examples
A customer in your retail store knocks over a product display, damaging their phone. GLI helps cover repair or replacement.
Your technician accidentally scratches a client’s hardwood floor while moving equipment. GLI can handle the cost of repair.
What General Liability Insurance Doesn’t Cover
While broad, GLI has some limitations:
Intentional Acts – Any deliberate damage caused by you or your team is not covered.
Employee Property – Damage to your own business property or to items owned by employees isn’t included.
Professional Errors – Mistakes made while providing professional advice or services usually fall under Professional Liability Insurance.
How to Maximize Your Protection
To make the most of your GLI policy:
Review Coverage Limits – Ensure your policy matches your risk exposure.
Consider Umbrella Insurance – Provides added protection beyond your GLI limits.
Update Your Policy Regularly – Adjust your policy as your business grows or changes.
Final Thoughts: Let THAgency Help You Lower Your Risk
At Toby Hansen Agency, we work with nearly 100 insurance carriers to compare coverages and find you the best value for the best protection. Whether you’re just starting or you’ve been in business for decades, we can help lower your general liability premiums without cutting corners. Let us review your policy and help you stay protected from property damage claims and more.
