Commercial General Liability

---

General liability insurance is designed to help cover the cost of claims that may arise during normal business operations. If your business doesn't have coverage, you may have to pay for these costs out of pocket. A general liability insurance policy is meant to help cover claims that your business may be held responsible for. These claims can include:

• Third-party bodily injury: If a customer is injured while on your business premises, they may sue you. Your insurance policy includes bodily injury liability coverage, which can help pay for their medical bills.
• Third-party property damage: If your business causes damage to someone else's property while working on their premises, the property damage liability coverage can help pay for the repair or replacement costs.
• Reputational harm: If someone sues your business for libel or slander due to something said by you or your employees, general liability insurance can help cover your legal costs to defend your business.
• Advertising injury: Your business can be sued for copyright infringement if you use someone else's copyrighted material without permission. For example, a photographer can sue you if you use their photo in your ads without proper authorization.

General liability insurance is not designed to cover every type of claim your business might face. For instance, it does not offer protection against claims related to work-related injuries or illnesses sustained by your employees. In such cases, workers' compensation insurance can help cover their medical expenses and ongoing care costs. Similarly, if your business property gets damaged, property insurance will prove to be useful. Lastly, professional liability insurance can cover any errors made in your business' professional services.

Liability claims can be a significant financial burden for businesses. Shockingly, statistics indicate that around 40% of small businesses are likely to experience a liability claim within the next decade. Slip and fall accidents, in particular, are the most common reason for emergency room visits, and can result in an average claim cost of $35,000. If a claim escalates to a lawsuit, the average cost of defense and settlement can exceed $75,000. Without general liability insurance, businesses would be required to pay these costs out of pocket, which could potentially lead to bankruptcy.

In addition, many companies require proof of insurance, in the form of a certificate of insurance, before working with another business.