General liability covers a lot of common issues that you might run into, particularly if you work on client properties or interact with customers on a day-to-day basis. Basically, this essential insurance policy covers bodily damage, property damage, and even reputational damage that were caused by your business.
Here are a few scenarios to help give you a better idea of what general liability insurance covers:
You’re a general contractor who has been called to a client’s house to perform roof repairs. You’re up on the second story roof, working away when suddenly a pile of shingles slips off the roof and falls on your client, who unfortunately happened to be passing by. The client’s okay, but he had to go to the hospital to get checked out. As a result, you’ve ended up with a pretty large medical bill that you’re responsible for.
That’s where general liability insurance steps in. Depending on your policy limit, this coverage can cover the cost of your customer’s medical bills. It can even cover the cost of a lawsuit if your client decides to sue you for pain and suffering.
You run a successful cleaning empire, so you have a whole team of employees who go out to clean homes. One of your employees accidentally uses the wrong kind of cleaner on a client’s oak table, causing significant damage. The client calls you and demands that you replace the table or reimburse her for the original purchase.
Without insurance, you’d be 100% responsible for that bill - and even if you refused to pay it, your client could take you to court. However, your general liability coverage may be able to pay out the costs to your client, even if she decides to sue your business for property damage.
A client refused to pay you for your services - and you’re steaming mad about it. You’ve considered suing, but you feel like you have to tell the world how awful your customer has been to you. You hop on social media, create a post about your client, and add a few colorful pieces of information. Your customer ends up seeing the post and decides to sue you for reputational damage.
This is when your general liability insurance may cover your legal costs and resulting payouts (up to your policy limit, of course). While we don’t recommend posting about clients on social media, it’s good to know you could be covered in case this rare situation happens.
Whether you’re shopping for a brand-new policy or comparing policy prices, we can help you find affordable protection that’s personalized to your needs. Start your quote here!
*Harborway Insurance policies are underwritten by Spinnaker Insurance Company and reinsured by Munich Re, an A+ (Superior) rated insurance carrier by AM Best. Harborway Insurance is a brand name of Harborway Insurance Agency, LLC, a licensed insurance producer in all 50 states and the District of Columbia. California license #6004217.