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General Liability Insurance

General liability insurance is a cornerstone of business protection. This type of business liability insurance safeguards your organization from claims resulting from common business-related risks such as bodily injuries, property damage, and personal and advertising injuries. It’s about making sure that your operations don’t grind to a halt due to unexpected events or accidents that may cause financial setbacks.

Reasons for getting General Liability Insurance:
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Protects your company against the cost of third-party claims.
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Safeguards your customer’s property, whether bodily or personal.
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Protects your company’s assets against legal obligations.

What Is General Liability Insurance?


General liability insurance, also known as business liability insurance, is a critical safeguard for businesses of all sizes and sectors. This type of insurance offers financial protection against common operational risks, preventing a business from bearing the heavy burden of out-of-pocket expenses that can arise from unexpected incidents.

At its core, general liability insurance provides coverage for claims related to third-party bodily injuries, property damage, and personal and advertising injuries. For instance, if a customer slips and falls in your store, your general liability insurance policy can cover the associated medical costs and legal fees if a lawsuit ensues. Similarly, if your business accidentally damages a client’s property while providing a service, business liability insurance can cover the repair or replacement costs.

In the realm of personal and advertising injuries, the policy can handle the financial implications of claims related to libel, slander, copyright infringement, or invasion of privacy tied to your business activities. Thus, whether you’re facing a physical accident or a marketing mishap, general liability insurance acts as a protective shield for your business, mitigating financial losses and helping ensure your operations remain stable.

General Liability Coverage

General liability insurance offers broad protection against some of the most fundamental risks companies face. Known as “slip-and-fall” or “all-risk” insurance, this policy covers personal or property damage and bodily injury occurring on the business premises.

Who Needs General Liability Insurance Coverage?

Just about any business, regardless of its size or industry, should have general liability insurance. Whether you own a retail store, a tech startup, or a small home-based enterprise, you face risks daily. A customer could slip and fall on your premises, a product you sell could malfunction causing harm, or you might accidentally damage property when providing a service. General liability insurance offers a safety net against these common perils.

The following are a handful of companies that benefit from general liability insurance:

Startups

Companies in their infancy must keep momentum by avoiding the expense of lawsuits, claims, or settlements.

Small Businesses

Nearly 40% of small business owners will likely experience a general liability claim in the next decade.

Property Renters

Many general liability claims involve accidents that occur on the property, such as scratching the hard-wood floor of a rented office space.

Companies with Visiting Customers

Customers are injured regularly after slipping and falling while visiting businesses — it’s the notorious “slip-and-fall” claim scenario.

What Does General Liability Insurance Cover?

You will have to consult your policy documents to confirm exactly what coverage your general liability insurance provides. Still, this policy typically covers:

Bodily Injury

If a third party sustains an injury on your business premises or due to your business operations, general liability can cover medical expenses, legal fees, and any awarded damages.

Property Damage

If your business unintentionally damages a third party’s property, this business liability insurance policy could cover the repair or replacement costs.

Personal and Advertising Injury

Claims involving libel, slander, copyright infringement, or invasion of privacy can be financially draining. General Liability can help you manage these costs.

Legal Defense Costs

Coverage for attorney fees, court costs, and other legal expenses incurred during defense against covered claims.

General Liability Insurance Policy

General liability insurance covers:

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Bodily injury
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Property damage
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Personal and advertising injury
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Legal defense costs

How Can I Manage My General Liability Policy & Risks?


Managing your General Liability policy effectively involves regularly reviewing and updating your coverage to reflect changes in your business. As your business grows, your insurance needs may evolve. Keep in regular contact with your insurance broker or agent to ensure that your policy remains adequate.

What Does A General Liability Policy Not Cover?

Despite its broad coverage, general liability insurance does not cover everything. Employee injuries are covered by workers’ compensation, not general liability. Similarly, professional errors are under errors and omissions insurance, and damages to your own business property fall under commercial property insurance.

General Liability Insurance Cost

The cost of general liability Insurance depends on various factors such as your business type, location, size, and perceived risk level. Typically, high-risk industries or businesses with a history of many claims will face higher premiums. However, considering the financial protection it provides, the cost of general liability insurance is often seen as a worthwhile investment.

General Liability Insurance Cost Factors

General liability insurance cost can be influenced by several factors, including but not limited to:

Business Industry

Additional Side A coverage responds if the insured exhausts the rest of the policy.

Business Size

Larger businesses typically have more exposure to risk, and thus, may have higher insurance costs.

Business Location

If your business is located in an area with a high incidence of claims or litigation, your premiums may be higher.

Years in Business

Companies with a longer business history may have lower premiums, especially if they have a strong record of safety and few claims.

Claim History

If your business has a history of many claims, insurers may consider you high risk, increasing your premiums.

Coverage Limits and Deductible

Higher coverage limits and lower deductibles can lead to higher premiums, but provide greater protection.

Number of Employees

More employees can increase the risk of potential claims, influencing the cost of the insurance.

Business Operations

Specific activities, such as those involving hazardous materials, may increase the risk and therefore the cost of insurance.

General Liability Insurance Claim Examples

Every company faces unique risks, so we can structure your policy to fill the gaps in coverage with numerous market-leading enhancements

A local bakery was busy with customers one Saturday morning. Amidst the hustle, an employee mopped the floor but forgot to put out a “wet floor” sign. An elderly customer slipped on the wet floor, resulting in a hip fracture. The customer filed a claim against the bakery for her medical expenses and physical therapy costs. The bakery’s general liability insurance covered these costs, as well as legal fees when the customer decided to sue.

A landscaping company was contracted to prune trees at a client’s property. However, a misjudged cut led to a substantial branch crashing onto the client’s garage roof, causing considerable damage. The client claimed the repair costs from the landscaping company. Their general liability insurance policy covered the repair costs, saving the landscaping company from a substantial financial setback.

A small fashion retailer used an image sourced from the internet for their online advertising campaign, unknowingly infringing on a photographer’s copyright. The photographer sued the retailer for copyright infringement. The retailer’s general liability insurance policy covered the legal defense costs and the settlement, protecting the business from a potentially significant financial loss.

A local restaurant owner posted a negative review about a competing restaurant on social media. The competitor saw the post and sued the owner for defamation. The restaurant owner’s general liability insurance kicked in, covering the legal costs associated with the lawsuit and the settlement that followed. Without the policy, the restaurant owner would have faced a considerable out-of-pocket expense.

A local bakery was busy with customers one Saturday morning. Amidst the hustle, an employee mopped the floor but forgot to put out a “wet floor” sign. An elderly customer slipped on the wet floor, resulting in a hip fracture. The customer filed a claim against the bakery for her medical expenses and physical therapy costs. The bakery’s general liability insurance covered these costs, as well as legal fees when the customer decided to sue.

A landscaping company was contracted to prune trees at a client’s property. However, a misjudged cut led to a substantial branch crashing onto the client’s garage roof, causing considerable damage. The client claimed the repair costs from the landscaping company. Their general liability insurance policy covered the repair costs, saving the landscaping company from a substantial financial setback.

A small fashion retailer used an image sourced from the internet for their online advertising campaign, unknowingly infringing on a photographer’s copyright. The photographer sued the retailer for copyright infringement. The retailer’s general liability insurance policy covered the legal defense costs and the settlement, protecting the business from a potentially significant financial loss.

A local restaurant owner posted a negative review about a competing restaurant on social media. The competitor saw the post and sued the owner for defamation. The restaurant owner’s general liability insurance kicked in, covering the legal costs associated with the lawsuit and the settlement that followed. Without the policy, the restaurant owner would have faced a considerable out-of-pocket expense.

Insurance Brokers For General Liability Insurance

Founder Shield is a data-driven insurance brokerage serving high-growth, innovative industries. We have a passion for creating and developing innovative risk management products across emerging industries and work hand in hand with clients and underwriters to ensure transparency, efficiency, and reliability every step of the way. Our team has specialized expertise and experience in providing cyber insurance services.

We partner with the leading general liability insurance carriers to craft tailored risk management programs for public companies and venture-backed companies preparing for funding rounds. With  insurance a major budget item, we understand that companies look for new and creative solutions to help manage increasing costs while also securing best-in-class coverage.

Justin Kozak Vice President sq
Justin Kozak

Justin is the market-facing leader at Founder Shield, with eight years invested in the boutique broker and more than a decade in the insurance industry.

Get a General Liability Insurance Quote

Finding insurance coverage doesn’t have to be painful. We aim to make the purchasing experience as streamlined & intuitive as possible.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

1
Get a quote

Use our custom built online portal to get quotes fast. We automate clerical tasks that plague the traditional insurance brokerages, giving us more time to be responsive and alert to your company’s needs.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

2
Pair with a specialist

No two organizations are the same. Our team of coverage experts partners with your team to engineer your risk management strategy, together. We take the time to understand the intricacies of your company to get you the best possible coverage.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

3
Stay one step ahead

To do better, you need to know better. With changing political, technological, legal and economic landscapes, staying ahead of the curve is critical.

Our in-house team is tapped into the latest developments of your industry, proactively ensuring you’re covered.

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