What is General Liability Insurance?

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What is General Liability Insurance?

Everyone talks about needing general liability insurance, especially if you work on clients’ properties. But what exactly is general liability insurance? And how can it protect your business?

It can provide protection against lawsuits and damages.

At its very essence, general liability insurance is a policy that covers damages resulting from third-party accidents and physical injury. For example, if you’re a roofer and one of your customers claims that a roof you built has leaked, your policy could cover the cost to repair those leaks (and furniture that was damaged as a result).

Here’s another example: Let’s say you’re remodeling your retail shop. You’ve got a bunch of wires out on the floor - and a customer ends up tripping over one. Your general liability coverage can pay for the customer’s medical bills, as well as any lawsuits they may bring against you.

Think of general liability insurance as the foundation of your business protection. While your insurance needs may differ based on the industry you’re in, it’s very likely you may need to get general liability coverage.

It may keep your personal finances safe.

General liability insurance can ensure that any legal claims don’t end up draining your bank account (or your family’s finances!).

Think about it this way: If a client claims that you damaged her home while performing a project, your general liability insurance can help pay for home repairs. But without that insurance, you’d be left on the hook. That means you have to pay for those repairs out of your own business bank account.

And if those repairs are really expensive, you’ll have to pay right out of your own pocket.

It can show customers you’re serious about your business.

Having general liability coverage can show clients that you take their projects - and your business - seriously. Customers may feel a lot more comfortable hiring someone who’s insured, so if you don’t have coverage, it could be holding you back from getting bigger and better projects.

It doesn’t cover everything, though!

General liability does have its limitations. This type of insurance doesn’t cover:

  • Employee injuries and illnesses
  • Commercial vehicle accidents
  • Punitive damages
  • Professional mistakes
  • Intentional mistakes
  • And more

Want to know more about general liability insurance? Check out:

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