General liability insurance provides coverage for: • Third party bodily injury. • Third party property damage. • Product liability. • Libel, slander, and copyright.
Third party bodily injury If a customer is hurt on your property, general liability insurance can help pay for immediate medical expenses or legal expenses if they charge your business. Example: A customer slips on a freshly mopped floor and breaks his leg. The doctor's bills and time off work add up fast, so the customer sues to recoup his losses. Your policy can cover the cost of your customer's immediate medical expenses, such as the ambulance ride and emergency room visit. If a customer refuses your assistance and selects to charge at a later date, your policy can help cover the cost of hiring a lawyer to negotiate and settle the case or take it to trial.
Third party property damage General liability insurance can cover costs to repair or replace customer property that is damaged in a business. Example: An employee accidentally falls coffee on a client's $4,000 laptop, making it impossible. Depending on policy limits, business liability insurance can cover some or all expenses associated with replacing the damaged laptop.
Product liability Not all property damage or customer injuries happen inside a store. If a business manufactures, distributes, or sells products, it can be charged over the damage those products cause to people or property. Example: A customer buys and eats a store’s signature salsa. Shortly after, she falls seriously ill and misses three days of work. She thinks the salsa is to blame, so she charges the salsa business for lost wages. General liability policies can typically cover the legal expenses associated with product liability lawsuits.
Libel, slander, and copyright (advertising injury) If someone charges a business owner or employee over insult or copyright violation, general liability insurance can help pay for claim expenses. Example: An employee at a photography studio jokingly tweets that the owner of a competing studio is guilty of tax evasion. The tweet goes viral, and the owner of the competing studio decides to charge for libel. Advertising injury coverage in business liability insurance can help pay for legal defense expenses and settlement or judgment costs when you're charged over advertising mistakes.
The IDA provides Commercial Auto and General Liability Insurance, Business Formation and Route Re-engineering support for large brands. For more information visit: https://www.nationalida.com/