General Liability Insurance FAQs

Regardless of size, sector or circumstance, operating most types of business requires you to account for the possibility that you may be at fault for incidents affecting other parties. No safety measures or experience level can fully eliminate certain risks and exposures, such as being liable for other parties’ bodily injuries and property damage. This makes general liability insurance one of the most common staples for most companies’ coverage portfolios.

Question: What is General Liability Insurance?

Answer: Also known as commercial general liability insurance, these policies live up to their name by offering a versatile and multifaceted package of financial protections capable of responding to many common incidents from which other parties accrue losses.

Question: What Does My Policy Cover?

Answer: General liability insurance claims may be submitted in response to many types of third-party losses, such as the following:

Bodily injuries—If someone is injured and your business is at fault, your insurance may help pay for their medical expenses and financial losses.

Property damage—Your general liability insurance can also financially assist with third-party property damage for which you’re at fault.

Personal and advertising injuries—These may include reputational harm and personal injuries for which you’re responsible, such as slander, libel, invasion of privacy and copyright infringement.

In addition to handling direct losses from such incidents, your coverage may also help with legal costs should your business be sued.

Question: Is This Type of Insurance Required?

Answer: There are no legal requirements regarding this type of liability insurance, but it should be considered one of the most instrumental components of adequate loss control measures. Without suitable coverage, even a single incident could lead to catastrophic financial and reputational harm. Additionally, retaining a policy may help cultivate trust and peace of mind among clients and prospects.

Question: How Much Does My Policy Cost?

Answer: As is the case with many types of insurance, your insurance rates may vary based on several criteria, such as the following:

Location

Industry

Workforce size

Years in business

Coverage limits

Claims history

Question: How Can I Get the Right General Liability Insurance?

Answer: Your business can explore and acquire the right coverage by working with a qualified insurance professional, such as those at Foothill Insurance Agency. Contact us today to learn more about your options or to compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

General Liability Insurance FAQs