General liability coverage is a must for business owners to have them covered against third-party liabilities and lawsuits while keeping their business operations uninterrupted. However, does it cover damage or losses to others resulting from your negligence? Yes, general liability insurance intends to protect businesses against negligence and accidental damage. However, it will not cover some negligent acts.
Let us discuss when does and when does not general liability insurance cover negligence.
What Kind of Negligent Acts Are Covered by General Liability Insurance?
- Negligence is referred to as the failure to take measures to protect others from harm or loss. For example, you are considered negligent if you fail to have warning sign boards on a slippery or uneven surface, putting people going around the area at risk of slips and falls.
- If a third-party sustains injury in your place, they might sue you for the losses they incurred consequently. In such circumstances, if you have general liability insurance, you will be covered against such injuries and resulting medical and legal expenses.
- A general liability insurance policy will cover negligent acts as long as they are accidental (having no bad intentions), including:
- An injury or property damage to a third-party caused on your premises or by your workers or your products/services.
- An injury or property damage to a third-party caused at another location you work. For example, construction contractors that visit job sites may accidentally injure someone or damage their property, and in such cases, their liability coverage will kick in to cover the losses.
- Liability claims and lawsuits resulting from advertising injuries, reputational harm, libel, slander, etc.
- Negligent Acts That Are Not Covered by General Liability Insurance
- A general liability insurance policy will not cover the following negligent acts:
- Intentionally injuring someone or damaging their property (for any reason).
- Accidents related to your workers (you must have workers’ compensation coverage to cover employee-related losses/damages).
- Accidents involving your business vehicles (you must have commercial auto insurance to cover these incidents).
- Mistakes and errors caused by your company professionals, including architects, engineers, consultants, accountants, etc. (professional liability insurance is a must to stay protected against these negligent acts).
Do I Need General Liability Insurance?
You might require general liability insurance if your business:
- Is based on contracts between two vendors
- Involves interaction with clients, customers, and vendors
- Represents clients of other businesses
- Includes visiting third-party sites
- Advertises/promotes products or services offered or manufactured by other businesses
Types of businesses that may need a general liability policy include:
- Medical practices
- Law offices
- Salons and spas
- Restaurants
- Construction companies
- Advertising agencies
- Digital marketing companies
- Cafes
- Leisure centers
- Financial agencies
- Gyms
Every business involves unique risks and threats. However, with a general liability insurance policy in place, you can run your business with peace of mind knowing that you are covered against every unforeseeable incident/damage. So, get one for your company and operate your business without having to worry about liabilities and lawsuits, and related expenses.
Protect Your Business with Kneller Insurance Agency
Whether you need a standard commercial general liability policy or a personalized one tailored to meet your business-specific risks, contact our insurance experts today at Kneller Insurance Agency. We look forward to helping you get the best possible commercial liability coverage at an affordable rate.
