What is General Liability Insurance?

General Liability Insurance, often referred to as Commercial General Liability (CGL) Insurance, covers your business against claims of bodily injury, property damage, and personal injury that may arise from your operations. It is a critical component of your overall risk management strategy, providing coverage for legal fees, settlements, and other costs associated with liability claims.

Coverage Details

1. Bodily Injury: Covers medical expenses, legal fees, and settlements related to injuries sustained by third parties on your business premises or as a result of your business operations. For example, if a customer slips and falls in your store, this coverage helps manage the associated costs.

2. Property Damage: Protects against claims for damage to someone else’s property caused by your business activities. This includes repairs or replacement costs for property that your business accidentally damages.

3. Personal and Advertising Injury: Covers claims of defamation, libel, slander, or advertising-related injuries. This protection is vital for managing risks related to marketing materials or other communications that may unintentionally cause harm.

4. Medical Payments: Provides coverage for medical expenses incurred by individuals who are injured on your business premises, regardless of fault. This helps cover immediate medical costs and avoid larger legal claims.

5. Legal Defense Costs: Covers the costs of defending your business against lawsuits and claims, including attorney fees, court costs, and expert witness fees. This coverage ensures that you can manage legal disputes without bearing significant financial burdens.

6. Products and Completed Operations: Protects against claims related to injuries or damages caused by products your business has sold or services you have completed. This includes issues arising after the product has been delivered or the service has been rendered.

Key Benefits at a Glance

• Bodily Injury Protection: Manages the costs associated with injuries sustained by third parties due to your business operations.
• Property Damage Coverage: Covers expenses related to damage to someone else’s property caused by your business activities.
• Personal and Advertising Injury: Protects against claims of defamation or harm caused by your business’s communications.
• Medical Payments: Provides immediate coverage for medical expenses of individuals injured on your premises.
• Legal Defense Costs: Covers costs associated with defending against lawsuits and legal claims.
• Products and Completed Operations: Safeguards against claims related to products sold or services completed by your business.

General Liability Insurance Statistics

To highlight the importance of General Liability Insurance, consider these statistics:

• Claim Frequency: Approximately 25% of small to medium-sized businesses experience a general liability claim each year. This statistic underscores the widespread nature of liability risks faced by businesses.

• Average Legal Costs: The average cost of defending a liability claim can range from $10,000 to $50,000, depending on the complexity of the case and the severity of the claim. This illustrates the financial impact of legal disputes and the need for adequate insurance coverage.

• Settlement Amounts: Settlements for general liability claims can vary widely but often range between $50,000 and $200,000. This range highlights the potential financial exposure businesses face when dealing with liability claims.

• Property Damage Costs: The average cost of a property damage claim for businesses is around $20,000. This includes repairs or replacement costs for property damaged by your business operations.

• Medical Payments: On average, medical expenses for injuries sustained on business premises can cost $5,000 to $10,000, depending on the nature of the injury and required treatment. General Liability Insurance helps manage these immediate costs.

• Advertising Injury Claims: Claims related to defamation or advertising injury can result in average settlements of $50,000 to $100,000, emphasizing the importance of coverage for personal and advertising-related injuries.

General Liability Insurance is a fundamental coverage for any business, providing essential protection against a wide range of risks, including bodily injury, property damage, and personal injury claims. With comprehensive coverage that includes legal defense costs, medical payments, and more, this insurance ensures that your business is safeguarded from financial losses and legal challenges.

To ensure your business is properly covered, give us a call TODAY at 703-674-0299.