What does general liability insurance cover?

General liability insurance is designed to protect businesses from a variety of claims that may arise from their operations. It specifically covers bodily injury, which refers to physical harm inflicted on individuals, and property damage, which pertains to any damage caused to someone else's property as a result of the business’s activities. Additionally, it encompasses personal injury claims, which include non-physical offenses like defamation or invasion of privacy.

This insurance is crucial for businesses because it helps mitigate financial losses that could arise from legal claims, thereby allowing the business to operate with greater peace of mind. In essence, it serves as a safeguard against potential lawsuits that can be costly and damaging to the business's reputation.

Provisions in general liability insurance typically exclude vehicle accidents, as those would usually fall under a commercial auto insurance policy. Coverage for natural disasters is also not a part of general liability insurance but rather specific property insurance policies. Moreover, general liability insurance is applicable to various types of organizations, not just non-profit entities, making it a fundamental component of risk management for businesses of all sizes and sectors.