What is general liability insurance?
General liability insurance protects your business in the event someone makes a claim against it for bodily injury or property damage. On a daily basis, your company touches the lives of many people, including contractors, clients, customers and the general public. And at any given point, one or several of these people could claim that your business has caused them bodily injury or property damage and bring a lawsuit against it. Such a claim may expose your business to the costs of defending itself as well as the damages associated with it. Having a general liability policy in place can mean the difference between keeping the doors open or going out of business when you face unforeseen circumstances.
Typically, general liability policies provide:
- Premises liability coverage, which offers protection against the costs of injuries on your business property.
- Products liability coverage, which offers protection against the costs of damage to property and injury to people caused by your products or services.
- Personal and advertising injury liability coverage, which offers protection against the costs of injury caused by certain offenses arising out of your business, including slander, libel, wrongful eviction, copyright infringement in your advertisement and more.
What does commercial general liability insurance cover?
Travelers commercial general liability insurance covers a variety of claims for damages that can result from:
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Injuries that happen on your property, such as those from slips or falls.
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Bodily injury or property damage to a third party caused by your work, products or your employees' activities.
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Liability of others assumed in specifically defined contracts.
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Libel, slander or business disparagement.
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Copyright infringement in your advertisement.
What is general liability insurance?
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Travelers umbrella.
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SPEAKER: What is general liability insurance? If you're like a lot of small business owners, you're not left with a lot of time to think about the what-ifs.
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But the truth is, things happen and things can go wrong. Say a customer slips on your floor and breaks a wrist, or an employee causes damage while working in a customer's home, or one of your products injures somebody or damages their property. That's why it's important to have general liability insurance.
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But the truth is, things happen and things can go wrong. Say a customer slips on your floor and breaks a wrist, or an employee causes damage while working in a customer's home, or one of your products injures somebody or damages their property. That's why it's important to have general liability insurance.
Consider a potential judgment or settlement plus the legal expenses. The costs can add up quickly. General liability insurance helps cover the costs associated with a claim against your business.
Here are three typical coverage features included in a general liability insurance policy-- premises liability for bodily injuries to customers or other people not employed by your company; products liability for damage to property or bodily injury to people caused by your products or services; and personal and advertising injury, which helps protect your business from the costs related to claims of slander, copyright infringement in your advertising, and more.
Don't let a liability claim derail the plans and aspirations you have for your business. To get started with general liability and other business insurance solutions, contact a Travelers independent agent or visit travelers.com.
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Who is commercial general liability insurance right for?
If it's possible that someone could claim bodily injury or property damage due to your business operations, your employees' actions or your services or products, you should have general liability insurance. Travelers offers options that protect against the unique risks of businesses in a wide range of industries.
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Travelers business owners policy (BOP) for small businesses
The broad protection of a Travelers business owner's policy (BOP) includes:
Commercial general liability
Commercial property insurance
Helps protect the business property you own, lease or rent, including assets like your buildings, equipment, furniture, fixtures and inventory.
Business income and extra expenses (BIEE)
Provides coverage when your business shuts down temporarily due to a fire or other covered loss. It helps replace your income and covered expenses like rent, payroll and other financial responsibilities while your property is being repaired or replaced.
Who is Travelers BOP right for?
Travelers BOP is built to protect many types of small businesses. This includes:
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Commercial real estate
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Contractors
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Garages
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Manufacturers
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Printers and publishers
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Religious and cultural organizations
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Restaurant and food service
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Wholesalers and distributors
Customize your solution
Travelers builds specialized solutions for small business.
Commercial general liability insurance FAQs
Commercial general liability insurance costs will vary depending upon your industry and the terms of your policy. For example, if you own a construction firm, your premiums will likely be higher than those of an IT consultant with a home office. Your cost for general liability insurance can be influenced by a number of other things, including:
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Risk exposure: Depending on the industry you operate in, your costs for commercial general liability insurance can be higher or lower than the average.
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Risk management efforts: If you take precautions to guard against risk, such as installing security systems on your premises or providing training programs for your employees, your liability insurance premiums could be lower than the average.
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Location: Rates for commercial general liability insurance vary based on your state, your actual geographic location and the locations of your business.
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Business stability: The number of years you have been in business and your proven financial stability can lower your costs for commercial general liability insurance.
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Contractual relationships: If you are subcontracting your work out or hiring third parties to perform operations on your behalf, have third-party contractors on your premises or have leased or temporary employees, those relationships may affect your GL coverage rates.
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Claims history: Having previous liability claims will generally result in higher premiums for commercial general liability insurance.
Learn more about commercial general liability insurance with the information below or find an agent for a commercial general liability insurance quote.
A commercial general liability insurance policy protects your business against claims for bodily injury, property damage, and personal and advertising injury. Professional liability insurance coverage, on the other hand, protects businesses and individuals against claims made by clients for wrongful acts resulting in economic damage. Many businesses can benefit from both coverages.
While general liability insurance isn't typically legally required, it helps protect you and your business from the potentially crippling costs when lawsuits arise, and promotes ease of doing business.
There may be circumstances where you're required to show proof of general liability insurance when signing a contract or applying for a license in specific states. Certain customers, especially large organizations, may have general liability insurance requirements before they'll hire you as a vendor. General liability insurance may be required for some types of professional licenses, such as plumbing or electricians. Finally, property management firms may require that you have general liability insurance before they'll rent you space.
There are certain instances where your business is legally required to have general liability insurance. You may sign a contract with a client for work and that contract can specify that you prove you are covered. You may lease space, and your lease contract may stipulate that you retain general liability coverage while you are a tenant. If you are accredited or licensed by a professional organization or are required by your state or municipality to have a business permit, you may need to show proof that you are covered by general liability insurance in order to keep your license or permit. If you are financing a building or equipment, your lender may require GL coverage.
General liability insurance is a smart starting point for business protection. However, it doesn't protect against every claim that might arise. Claims related to the quality of your work or professional negligence generally are not covered under general liability insurance. For protection against the costs of these types of claims, you can purchase errors and omissions or professional liability insurance.
You can customize general liability insurance coverage to address the needs of your business. For example, you may also want to consider specific types of liability insurance, such as liquor liability or pollution liability, that provide relevant coverage for risks unique to your business.
For additional protection, an umbrella policy can provide higher limits of insurance to supplement your primary general liability coverage.
For more information about general liability and other business insurance solutions, contact a Travelers independent agent.
General liability insurance is designed to protect you from the expenses from some of the most common lawsuits that arise from doing business. But general liability insurance is not designed to protect against losses that happen when your tools, equipment, inventory or other property are stolen. Commercial property insurance as well as a combined business owner's policy protect against theft.
General liability policies may be purchased as stand-alones or as part of a comprehensive business owner's policy (BOP). Your insurance agent can help you customize your coverage to address the specific risks facing your business. They can also assist in setting up the policy and teach you some smart business practices that may help you avoid unnecessary claims.
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