What is Commercial General Liability Insurance?
A General Liability policy covers the following: General Liability, Personal & Advertising Injury, Medical Payment and Damage to Premises Rented to you.
General liability insurance (GL) is coverage that can protect you from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations. General liability insurance can also protect you against any liability as a tenant if you cause damage to a property that you rent, such as by fire or other covered loss. Finally, it can also cover claims of false or misleading advertising, including libel, slander, and copyright infringement.
General liability insurance can be purchased on its own, but it can also be included as part of a Business Owner's Policy (BOP).
Why Do I Need This Coverage?
General Liability coverage annual premiums usually range from $500 and up depending on your line of business and coverage needs. That’s certainly a lot less than the thousands, if not millions, of dollars you may need to spend fighting your case in court.
For example, you own a beauty salon and a customer comes in and slips on hair that was not swept up. She breaks her leg and sues for damages. Without insurance, you would have to pay out of pocket her medical bills plus any additional money she may ask the court for.
Another example is a carpenter. If you are working in a home and you leave a tool out that someone get a cut on or trips over, you are liable for any injuries that may occur.
This policy will also cover damage for a covered loss of a place that you are renting under damage to premises rented to you. If you leave something plugged in and it causes a fire, if it is a covered loss, this coverage would pay out for it.