Commercial Risk Management
General Liability Insurance
The foundation of every commercial risk management program.
Coverage That Every Business Needs
General liability insurance responds to bodily injury claims, including injuries sustained on your premises or caused by your operations. If a customer slips at your location, falls at a job site you're managing, or is hurt by something your team does in the field, general liability is the policy that responds first.
It also responds to property damage caused by you or your employees. If your crew accidentally breaks something at a client's location, GL pays for it. Beyond physical damage, the policy includes personal and advertising injury, which responds to claims of libel, slander, and copyright infringement arising from your marketing and advertising activities. It's broader than most business owners realize.
Products and completed operations coverage rounds out the core policy. This protects against claims arising from products you sell or work you've finished.
Key Facts
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Per-occurrence vs. aggregate limits: Each claim has its own per-occurrence cap; the aggregate is the total the policy pays across all claims in a policy year.
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Standard limits are $1M / $2M: $1 million per occurrence and $2 million aggregate is the typical starting point for most commercial accounts.
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Products / completed operations included: Most standard GL policies include this as part of the aggregate, but it's worth confirming your policy language.
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Medical payments coverage: Pays minor medical bills for injured third parties without requiring a lawsuit, helping to resolve small incidents quickly.
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Premises and operations both covered: Incidents at your location and incidents caused by your ongoing operations are both within scope.
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Defense costs typically outside the limit: On most GL policies, the carrier pays defense costs in addition to the policy limit, not out of it.
Slip and Fall on Business Premises
If a third party is injured on your property, your GL policy responds to their medical bills, legal defense, and any resulting judgment up to your policy limits.
Third-Party Property Damage
If you or your employees damage someone else's property during normal business operations, GL pays for repairs or replacement and the cost of defending any resulting claim.
Advertising Injury
Responds to claims of copyright infringement, defamation, or misappropriation of ideas arising from your advertising. A competitor's trademark appearing in your ad can trigger this coverage.
Products Liability
If a product you sell, distribute, or manufacture causes bodily injury or property damage, your GL policy responds to the claim even after the product has left your hands.
Completed Operations
Work you've already finished and signed off on can still generate claims. Completed operations coverage picks up bodily injury or property damage that appears after project completion.
Medical Payments
Pays reasonable medical expenses for third parties injured on your premises without requiring any finding of negligence. It's designed to resolve minor incidents quickly, before they become lawsuits.
Personal Injury (Libel and Slander)
Responds to claims made against your business for written or spoken statements that damage someone's reputation, including false arrest allegations in retail settings and certain privacy violations.
What General Liability Doesn't Cover
Understanding exclusions isn't pessimistic, it's how you build a complete program. GL is broad, but it's designed to work alongside other policies. Here's what it doesn't pick up and what to carry instead.
Professional Errors and Omissions
Mistakes in professional advice or services are excluded. If your error causes a client financial harm, that's a claim for your professional liability (E&O) policy, not your GL.
Employee Injuries
Your employees are covered by workers' compensation, not general liability. GL is strictly for claims brought by third parties, not members of your own workforce.
Owned Auto Accidents
Accidents involving vehicles you own are covered under a commercial auto policy. GL doesn't extend to your fleet, even when an accident happens in the course of business operations.
Intentional Acts
Coverage is designed for accidents, not deliberate wrongdoing. Claims arising from intentional acts by you or your employees are excluded across virtually every GL policy in the market.
Pollution (Without an Endorsement)
Most standard GL policies exclude pollution-related claims unless a specific pollution liability endorsement is added. Contractors, manufacturers, and environmental services firms should address this separately.
Contractual Liability Beyond Insured Contracts
If you assume liability for a third party through a contract that doesn't qualify as an "insured contract" under the policy, that assumed liability may fall outside your GL coverage.
Let's Review Your Liability Coverage
Most businesses don't know what their liability policy actually responds to until a claim happens. Let's find out before a lawsuit does.