What is General Liability Insurance
No matter what the size or nature of your business is, operating any business comes with unique risks, and the biggest challenges are often the most common. At Lancaster Insurance Center, we provide you with a tailored insurance package that is right for your business.
Business Liability insurance is referred to as “General Liability Insurance.” This coverage protects your business from financial loss should you be liable for property damage or personal and advertising injury caused by your services, business operations or your employees. It covers non-professional negligent acts.
General Liability insurance policy will usually cover the cost of your legal defense and will pay on your behalf all damages, if your found liable. General Liability insurance is an important coverage to have, due to the adverse impact that a lawsuit could have on a business.
Coverage A: Bodily Injury and Property Damage Liability
Bodily injury and property damage coverage provides protection against losses from the legal liability of insureds for bodily injury or property damage to others arising out of non-professional negligent acts or for liability arising on their premises or business operations. Mental injuries and emotional distress can be considered bodily injuries, even in the absence of physical bodily harm.
Workers’ compensation and employment practices liability insurance are excluded, purchased as separate policies. Pollution liability is excluded and can be purchased as an endorsement, this coverage is very limited, and high-risk businesses should consider purchasing a separate pollution liability policy. Liquor liability, professional liability and other risks may also be excluded.
Coverage B: Personal and Advertising Injury
Personal and advertising injury liability protects an insured against liability arising out of certain offenses, such as:
• False arrest
• Infringing on another’s copyright
• Malicious prosecution
• Use of another’s advertising idea
• Wrongful eviction, entry, or invasion of privacy
Coverage C: Medical Payments
Limited coverage for medical payments includes payments for injuries suffered by a non-employee caused by an accident that takes place on the insured’s premises or when exposed to the insured’s business operations. Medical payments coverage can be initiated without legal action. This provides for prompt settlement of smaller medical claims without litigation. It is included in the General Liability policy and pays for all necessary and reasonable medical, surgical, ambulance, hospital, professional nursing, and funeral expenses for a person injured or killed in an accident taking place at the insured’s premises or arising from business operations. There is no defense or legal liability coverage—as there is with bodily injury and property damage (Coverage A) and personal and advertising liability (Coverage B) —since coverage is provided on a no-fault basis.