Who is the general liability insurance coverage for?


Businesses, especially those operating in public, are exposed to the risk of being sued for any injuries or damages that their clients or employees incur on the business's premises or as a result of the company's operations. The risk of general liability increases manifold when recreational services, loud music and drinking are involved.

Since costumers are considered invitees, business owners owe them the highest degree of care and protection. Failure to provide the necessary care can potentially cause harm to others, which can result in general liability claims against the business owner. And if found guilty of negligence, a business owner can suffer financially devastating consequences.

That worst-case scenario is not only hypothetical: unprotected owners are very often forced to close down their businesses because of having to pay exorbitant amounts in general liability claim damages. This situation can be easily avoided if business owners have general liability insurance.

How General Liability Insurance Works

Every business owner is strongly advised to purchase an insurance coverage specifically designed to safeguard a company's assets from general liability claims. Having Commercial General Liability (CGL) insurance coverage is a guarantee that whatever happens, a company's finances will be protected.

General liability claims may arise out of bodily injury, property damage, personal injury, such as libel and slander, and advertising injury (such as copyright infringement). Commercial general liability insurance coverage provides protection in all the above cases, by covering the liability damages on behalf of the insured.

General liability insurance provides the following coverages:

  • Premises and operations liability coverage;
  • Defense expenses;
  • Medical costs coverage or people injured on the insured's premises;
  • Personal and advertising injury coverage - if the insured commits torts such as patent infringement, privacy violation, malicious prosecution or any defamation of character.
  • Fire damage coverage for harm or losses arising out of fire on the insured's business premises.
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