General Liability Insurance: What Exactly Does it Cover?

If you are a business owner or you are thinking about starting a business, you have probably heard about the need to purchase business insurance, and you have also likely heard of general liability insurance.

But what does general liability business insurance cover, exactly? Keep reading to learn more so that you can make the right decisions to keep your company going strong while protecting it from disasters and lawsuits.

General liability insurance for business

First Off, What is General Liability Insurance?

Before you begin shopping for general liability insurance for your business from companies like, it is important to understand exactly what you are buying.

Basically, general liability insurance will protect your business’s assets while also paying for any costs associated with lawsuits brought forth against your company. But it can also protect you against disasters that can occur and result in the loss of your assets.

Coverage of Medical Expenses

Anytime you have people working for you or entering your place of business to do business with you, there is a chance that someone can get hurt, even in a serious way.

If someone gets hurt on your business’s premises and your company is sued, your general liability insurance will cover the medical expenses associated with the injury.

General liability will also cover your company in the event that someone uses your products or services and becomes injured and needs medical care to get better.

Legal Costs

When a lawsuit is brought against your company, your general liability insurance will not only cover the medical expenses, it will also cover the costs of your legal defense and pay your attorney’s fees as well.

Beyond that, it will also cover the costs that are associated with a settlement you have to agree to if you do not win the case.

Ultimately, general liability insurance will cover non-monetary losses that are suffered by an injured party, as well as punitive damages and compensatory damages.

Damage to Property

If you rent a property to do business in, you can rest assured that any damages that are caused to the property that you rent will also be covered by your general liability insurance.

Damages caused by things like fires can be covered by this type of insurance policy, so it is clear why it is so valuable to have a good policy in place before disaster strikes.

Other Legal Issues

Other legal issues are also covered by general liability insurance.

For example, if you end up putting out an advertisement that is deemed misleading or false, or if you are accused of slander, libel, or copyright infringement, your general liability insurance will take over and cover the costs that are associated with these types of lawsuits as well.

As you can see, business insurance, particularly general liability insurance, is a very important aspect of doing business today. It is a protection that you absolutely should have in place in order to protect your company’s assets and keep the business going strong even if you enter into any type of legal trouble.