General liability insurance, or Commercial General Liability (CGL) protects your business from another person or business’s claims of bodily injury, associated medical costs, damage to others’ property, and lawsuits involving libel, slander or copyright infringement.

We all know ambulance rides and emergency room visits can cost a fortune. Immediate medical expenses such as these are covered when an accident happens. And if a claim results in a lawsuit, your policy can help cover the cost of hiring a lawyer to negotiate and settle the case or take it to trial.

You need General Liability insurance coverage if:

• You have personal assets that could be jeopardized if a client sued you
• Your clients, investors, or association require it as a condition of doing business with you
• You operate a business with a high risk of generating lawsuits
• You live in a state that has a history of awarding high damages to plaintiffs

Bodily Injury

A subcontractor trips over a power chord,even after you warned him, and he falls down a flight of stairs. A CGL will cover the claim and related medical expenses.

Property Damage

While at an open house, a potential buyer knocks over a valuable sculpture and it falls and breaks into pieces. A CGL will pay for the replacement cost.

Libel, Slander, and Defamation

An email you wrote about a competitor's work is somehow uncovered and makes it onto the internet. The competitor sues you for libel. A CGL will cover the defense costs.

General Liability Covers You For:

• Third-party injury lawsuits (including slip-and-fall).
• Third-party property damage lawsuits.
  Product liability lawsuits.
• Libel, slander, and copyright infringement lawsuits.
• Immediate medical expenses.

Someone could file a claim against you alleging that a product you made or sold is defective and caused injury or damaged property. Most General Liability policies automatically include Products Liability coverage for your protection unless it's specifically excluded.  

Here are some details you can prepare ahead of time to get you the quote you need:

• Declaration page of your current general liability insurance policy (if you have one)
• Any prior losses your company has experienced. (A loss doesn’t necessarily mean your premium will be higher. Carriers evaluate each customer and loss event on a case-by-case basis)
• List of company officers and their positions. (Typically, the more experience and more successful the company’s overall record, the better the risk for the insurer – and the lower the premiums)
• Annual sales and payroll (along with the number of full-time and part-time employees, and/or subcontractors or consultants)
• Details of your companies current and future operations.

A waiver of subrogation is when you agree that you and your insurance company will not seek to recover all or part of any damages paid. You may need to pay an additional premium since more risk is being taken on by the carrier. You will need to waive your right to subrogation in writing and prior to any loss.

Things to think about when comparing various general liability insurance plans:

• Does the plan allow you to add coverage for additional services that you may include in the coming months or years?
• Does your plan include restrictions based on the number of employees at your company?
• Will your plan cover new locations that you add within a specific timeframe or is it limited to what your company owns now?

All of these questions and more will play a vital role in ensuring that your general liability business insurance plan will fit your needs if and when an accident occurs.

General Liability Insurance won't protect you from everything. Some things general liability does not cover:

• Professional errors.
• Employee injuries.
• Damage to your business property.
• Auto liability exposures
• Employee discrimination lawsuits.
• Fraud