What Does General Liability Insurance Coverage Include?

General liability insurance is an insurance policy that covers claims arising from an insured's liability due to bodily injury, property damage, fire explosion, legal defense, medical payments, product liability, advertising injury, etc.

General liability insurance coverage compensates for:

• Property Damage such as
• Physical damage to the property
• Loss of property
• Infringement of intellectual property.

It is important to note that property coverage often does not cover damage that is caused to the client's property you are working on or have in your possession.

In case of Bodily Injury, the general liability insurance would pay for:

• Medical costs
• Loss of proper service
• Even for deaths that resulted from the injury.

In case of Fire Explosion, your property insurance covers damage that is caused to your property as a result of fire, lightning or explosion. But general liability insurance provides coverage for the damages that is caused to other company's property as a result of negligence on your part. Let us say a fire in your office situated in the building’s second floor causes damage to another company’s offices below, then your general liability policy will pay for the damage to the downstairs office space.

General liability insurance provides medical payments for a person injured at your business, within a year of accident. It covers legal defenses, product liability, and also advertising injuries that can arise from:

• Infringing on others intellectual property like business titles, copy rights, etc.
• Publishing, writing false information that destroys a person or organization's reputation.
• Copying others advertising concepts, etc.

But general liability insurance does not cover employee injury and professional mistakes. It is required to get separate covers like worker's compensation policy and professional indemnity policy to cover the damages.