If you own a small business, you know you face business risks and may wonder, “What are some common general liability insurance claims?” That’s an important question, as the answer can help you understand whether you need general liability insurance (most businesses do) and if so, how much.
What is Commercial General Liability Insurance?
Commercial general liability insurance is a type of coverage that protects your business from the potentially serious financial repercussions associated with many types of liability. This includes:
- Damage your business causes to the property of customers or others
- Bodily injury to non-employees
- Product liability if a product you’ve developed or sold harms someone or damages their property
- Libel, slander, or copyright infringement, including things like “advertising injuries” where you say disparaging things about a competitor in your ads
Having the right amount of coverage (and potentially an umbrella insurance policy to extend that coverage) is essential when it comes to protecting your business.
General Liability Insurance Coverage: Common Scenarios
General liability insurance coverage is helpful in a wide variety of instances. For example, it may provide coverage in scenarios like these:
Can General Liability Insurance Coverage be Customized?
General liability insurance coverage is fairly broad. However, you can customize your policy with many different types of add-ons as needed. This can include what are called "endorsements" for:
Cyber liability. This add-on insurance protects you in the event of an incident like a data breach regarding private customer, employee, or client information. It can also provide coverage for regulatory action defense if a government agency requires you to appear in court.
Hired and non-owned auto liability. This coverage provides protection when you or an employee of your business is driving a rented, leased, hired, or borrowed vehicle for business purposes. A common example is an employee who makes deliveries using their own vehicle. Adding this endorsement to a general liability policy or business owners policy (BOP) means you don’t need a separate commercial auto policy for this purpose.
Employment-related practices liability. This endorsement protects your business in case of a claim or lawsuit related to inappropriate workplace behavior (e.g., wrongful termination, harassment, or discrimination).
Employee benefits liability. This add-on provides coverage in the event of errors or omissions in how you administer your employee benefits program. For example, it can protect you if you fail to add an employee to your medical insurance and the person is later denied coverage by the plan.
Contractors installation, tools & equipment. This insurance covers your business property, tools, equipment, etc. while at a job site, in transit, temporarily