What Does Liability Insurance Cover?
Many small business owners have a general liability insurance policy to help protect their companies. You may be asking yourself, “What does general liability cover?” This insurance helps protect your business from claims of:
• Bodily injury
• Property damage
• Advertising injury
• Copyright infringement
• Reputational harm
Liability claims are common and can come up during normal business operations. They can get expensive for small businesses and many don’t have the resources to cover a liability claim. Did you know the average cost of a slip and fall claim is a reported $20,000? And if you’re faced with a reputational harm lawsuit, be prepared that they’re around $50,000. Without liability insurance coverage, your business would have to pay these costs out of pocket.
A General Liability Policy for Your Business May Cover the Following Claims
• Bodily injuries and property damage your business may have caused. This can include customer slip and falls or employee accidents, like breaking a client’s windows while working at their home.
• Advertising injury that your business causes by defaming someone else or another company
• Copyright infringement from using someone else’s work in your business’ ads without their permission.
• Reputational harm if something you said in an interview about another business owner negatively impacts their company.Costs for property damage claims against your business
• Medical expenses if someone gets injured at your company
• Advertising injury claims against your business
• Administrative costs to handle covered claims
• Court costs, judgments and settlements for covered claims
• Your general liability insurance can help cover claims up to the coverage limits in your policy.