Commercial General Liability insurance coverage protects you, your employees and your business from claims made against you by third parties by transferring the burden of the financial loss from you to the insurance company.
What is Typically Covered?
General Liability covers you from claims involving bodily injury or property damage to another person or business. Medical expenses may also be paid under certain circumstances. General Liability also protects you from personal and advertising injury which includes injuries such as slander, libel, copyright infringement, wrongful arrest and violation to privacy, among others. Also, included are expenses from legal fees, judgments awarded by courts, out-of-court settlements, and lawsuits.
Bodily injury is to an individual is not limited to traumatic injury but also includes sickness, disease, and death.
Physical injury to tangible property, including all resulting loss of use of that property; loss of use of tangible property that is not physically injured. (Electronic data is not tangible property)
Personal and Advertising Injury
False arrest, detention or imprisonment; malicious prosecution; the wrongful eviction from, wrongful entry into, or invasion of the right of private occupancy of premises that a person occupies; oral and written publication of material that slanders or libels a person or organization’s goods, products or services; the use of another’s advertising idea in your advertisement; infringing upon another’s copyright, trade dress or slogan in your advertisement.
When does the insurance pay for a loss?
Before an insurer will pay for a liability loss, it must determine that the insured is actually legally liable. This is accomplished in either of the following ways:
- A court of law determines that the insured has committed a tort and is liable.
- The facts of the events indicate that if the case went to court, the insured would likely be found liable.
There are not covered under a General Liability Policy.
Employee Injuries – Workers Compensation protects your employees if they are hurt on the job
Professional Mistakes – Professional Liability protects you from problems due to your offering of an opinion, a recommendation or a solution in the course of doing business.