What Does General Liability Insurance Cover?


General liability insurance protects your business against a variety of possible claims. These include bodily injury, property damage, copyright infringement and reputational harm.


Often, these risks can disrupt your company and put you out of business if you’re not protected. That’s why it’s so important to have this coverage.


Bodily Injury

General liability insurance protects you and your business from third-party claims of bodily injury or property damage caused by your products, services or operations. It covers medical expenses, attorney fees and other costs resulting from third-party injuries and damages.


Bodily injury coverage pays for medical expenses that arise when someone is injured in an accident that you or your employees cause – and up to the limits of your policy. This is the same coverage that is included in most auto insurance policies, but it’s important to make sure you have this kind of protection on your business insurance policy as well.


A general liability insurance policy also includes some property damage coverage, which pays for damage to another person’s property as a result of a covered claim. This can include a customer’s car or home that was damaged when they visited your business.


This is a relatively common liability claim, and it can be very expensive for small businesses to cover. For instance, did you know that the average cost of a slip and fall lawsuit is $20,000? And a reputational harm lawsuit can cost up to $50,000?


It’s important to have this type of coverage because it can save you a lot of money. But before you buy this coverage, it’s important to understand what it covers.


You can choose from a number of different options to customize your general liability insurance policy and get the protection you need. These are based on your business and the risks it faces, including where you’re located and how many employees you have.


Getting the right coverage is an investment that’s worth it in the long run. For example, NerdWallet recommends a minimum of $1 million in general liability coverage for small businesses to ensure that you are protected from any lawsuits.


If you are a contractor or have hired you to work on a project for a client, they may insist on your having general liability insurance before they’ll hire you. If you don’t have this coverage, they could sue you and force you to pay the entire costs out of pocket.


Property Damage

Property damage coverage is the part of your General Liability policy that protects your business against third-party property damage claims. It pays for the cost of repairing or replacing damaged property that’s owned by a third party, such as your customers, clients or employees.


A property damage claim can have a serious impact on your business, putting you at financial risk if you don’t have enough liability insurance to cover it. You could end up with judgments, legal settlements or lawyer fees that can put your business in debt or bankrupt you.


The average cost of a property damage claim is $20,000, according to The Hartford. It can also cause your business to lose clients.


Imagine a customer trips on a fixture at your business and is injured, which can have a negative impact on your reputation. If they sue, it can cost you thousands of dollars in legal costs to defend your business, and the costs of medical bills can be astronomical.


Fortunately, Farmers offers small business general liability insurance to help you handle challenging situations and the associated costs of legal defense and damages. Each agent is also a small business owner, so they understand the challenges facing your business and can provide insights about coverage options that can help protect you.


When you buy general liability insurance, the amount of your deductible is an out-of-pocket expense you agree to before your coverage begins to pay. You can choose a higher deductible if you want to pay less out-of-pocket if you have a covered claim.


You can even increase your liability limits if you need extra protection. This can reduce your premiums and give you more peace of mind as a business owner.


Property damage is one of the most common causes of liability claims, so it’s important to make sure you have sufficient coverage. The minimum liability requirements in most states vary, so it’s best to talk with your insurer about the right level of protection for your business.


In addition to property damage, general liability insurance covers other types of claims, such as libel and slander lawsuits that can occur when your business says or does something that violates another person’s rights. It can also help cover advertising injury and copyright infringement claims.


Advertising Infringement

Advertising infringement occurs when a business uses another company’s copyrighted or trademarked name, product or packaging appearance (trade dress), slogan or other intellectual property rights without permission. This can happen when a business uses their trademark in an advertisement for a different product, or even when they use another’s slogan in advertising for their own products.


This is considered to be a form of copyright infringement, and this type of claim can be covered under an insurance policy. However, there are many exclusions to this coverage. For example, one exclusion states that the policy does not apply to any claim of libel, slander or false adver- tisement.


In addition, a policy may also exclude claims of trademark infringement. This is because trademarks are often used in advertising, and courts have found that they can cause confusion and infringement.


An insured who is alleged to have infringed another’s trademark may have a defense to this claim if they can show that they made use of the trademark in good faith and in a fair manner. They should be able to point to examples of how they used the trademark in their own advertising to show that they were making fair use of it.


For example, a business owner might want to use the name of a famous celebrity in an advertisement for their pizzeria. The law allows this kind of use in certain circumstances, such as when the person who is using the mark is making a positive statement about the pizzeria.


Another situation in which an advertiser could be liable for trademark infringement is when they compare their own product to a competitor’s. Courts have held that if an advertisement makes a comparison that implies that a competitor’s product is inferior, this can be considered to be misleading and a form of trademark infringement.


However, some insurers argue that there is no coverage for this sort of infringement. Regardless, this is an area of litigation that can be costly and time-consuming for the business to defend in court. This is why it’s so important to have the right general liability insurance in place.


Copyright Infringement

A business may need to defend itself against a lawsuit for copyright infringement. This can be costly, especially for smaller businesses. Fortunately, general liability insurance can help cover the costs of litigation.


In general, copyright infringement refers to the use of another’s creative work without their permission. This includes photos, videos, advertisements, blogs and other written works. It can also include making the content available online for download without paying for it.


The owner of a copyright can bring an infringement claim in court, where they can be awarded monetary damages and legal fees. In addition, they can seek a cease and desist order that calls for the infringer to stop using the content or face other penalties.


Usually, a copyright infringement suit is filed in federal court. A plaintiff must prove that they own the copyright, and that their work was infringed upon by the defendant. They must also show that their rights were infringed upon in a way that exceeded standards of fair use.


If the infringer is a professional, such as an attorney or architect, he or she can often find coverage through their professional liability policy, sometimes called errors and omissions (E&O). In these cases, the insurer must pay for any legal expenses that are incurred by the company in defending itself against the claims.


Some policies also provide a specific section for Internet media coverage. These policies can protect a business against a lawsuit for copyright infringement, including websites, blogs and other social media.


Many of these policies also have a technology E&O clause. This covers any professional who provides services related to technology or internet.


It’s important to know what your General Liability Insurance covers, so that you can make sure to have it in place if a lawsuit is ever brought against you for copyright infringement. It can save you from losing your valuable rights or facing a financial collapse.


If you are a small business owner, you should consider purchasing copyright infringement coverage for your business. It’s important to understand how this type of coverage works and why it is so vital.


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