What Are General Liability Insurance Coverage Limits?

General liability insurance coverage is an insurance coverage designed to cover any costs that result from anyone taking a legal action against you over something that involved your business. It provides broad coverage that account for a variety of situations and circumstances. However, general liability insurance policies can't cover everything. That is why it is important to find out just how far your liability coverage actually extends.

What General Liability Insurance Will Cover

General liability insurance provides broad, comprehensive coverage. Oftentimes, it comes packaged with property insurance. In some cases, the coverage may extend to your employees.

Some of the things that general liability insurance will cover include:

  • Medical compensation - covers the medical costs for anyone who was injured at your place of business. If a person died as the result of the injury, your general insurance policy will cover funeral costs.
  • Personal injury claims - covers legal costs if you are sued for personal injuries. This includes accusations of libel, fraud and unlawful physical violence.
  • Advertising injury claims - similar to above, it covers injuries caused by your business advertising. This includes claims that you published inaccurate and violating another company's intellectual property rights (copying its trademarked slogans and images, using it's copyrighted concepts, etc.)
  • Contractual liability - covers legal costs associated with any contracts you signed. 

What General Liability Insurance Will Not Cover

First and foremost, it is important to keep in mind that general liability insurance policy may not be able to cover all of the legal costs. You can either get a more specialized liability insurance or buy an umbrella insurance policy to make up the difference. There are also many liability costs that are covered by insurance policies other than general liability insurance. They include:

  • Lawsuits brought on by your employees - this is covered under workers' compensation.
  • Failure to perform professional services - this is covered under processional liability.
  • Anything you do in your capacity as an executive - this is covered by directors & officers insurance policy. 
  • Pollution caused by your business - this is covered under environmental liability insurance.
  • Lawsuits over recalled products - unlike others on the list, they are not covered by any insurance policy.

blog comments powered by Disqus