WD Royal Insurance: Your Trusted Independent Insurance Agency For Commercial General Liability

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 General liability (GL) insurance, also known as commercial general liability (CGL) or business liability insurance, protects businesses from common financial risks related to third-party claims. It covers expenses like legal fees and medical costs resulting from accidents, injuries, and property damage involving non-employees.

What general liability insurance covers

A standard GL policy can help your business cover costs from: 

• Bodily injury: Covers medical costs and legal fees if a customer, client, or other non-employee is injured on your business premises or due to your business operations. A typical example is a slip-and-fall accident.
• Property damage: Pays for damage your business or its employees cause to another person's or business's property. For example, a contractor accidentally damaging a client's property.
• Personal and advertising injury: Protects your business from claims of libel, slander, copyright infringement, and invasion of privacy that result from your advertisements or marketing. 
• Medical payments: Offers limited coverage for medical expenses for non-employees injured on your property, regardless of who is at fault. This helps resolve smaller claims quickly and avoid litigation.
• Damage to rented property: Covers fire damage or other covered perils to a property you are renting for your business operations.
• Products and completed operations: Covers claims arising from an injury or damage caused by a product you manufactured or a service you completed, even after the work is finished. 

What general liability insurance does not cover

A general liability policy does not protect against every type of claim. Common exclusions include: 

• Auto accidents involving company vehicles, which require a commercial auto policy.
• Professional mistakes or errors in your services or advice, which are covered by professional liability (or errors and omissions) insurance.
• Employee injuries or illnesses, which are covered by workers' compensation insurance. 
• Damage to your own business property, which is covered by commercial property insurance.
• Cyber liability, including data breaches and privacy violations, which requires a separate cyber insurance policy.
• Intentional wrongdoing or illegal acts. 

Who needs general liability insurance

Most businesses that interact with customers, sell products, or advertise should have general liability insurance. While often not legally required by state law, it is a crucial protection for many types of businesses, including: 

• Contractors and construction companies
• Retail businesses
• Consultants and other service providers
• Event planners
• Photographers

 In many cases, a client or a landlord may require proof of general liability coverage before entering into a contract or lease.

How to get general liability insurance

You can purchase general liability insurance as a standalone policy. Small businesses, however, often choose to buy it as part of a Business Owner's Policy (BOP). A BOP bundles general liability with commercial property and other coverages, which is often more cost-effective.