General Liability Insurance

By: EconomyWatch   Date: 26 May 2010

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General liability insurance is a type of commercial insurance that aims to cover financial losses arising from any physical injury or damage of property which is caused by the insurer or the employees of his company to others. Such insurance policies apply when the accidents take place at the premises of the insurer or at the customer's location. Insurance claims are not provided for the errors that may occur at the time of delivery of any professional service to the customers.

General liability insurance is also provided in cases of theft or any damage to the hardware or software of computers in the concerned company. Coverage is also provided in case of destruction of other properties and office furniture. There is of course, a limit imposed on the coverage that is provided.

General Liability Insurance: Extent of Coverage

Experts opine that general liability insurance should be to the extent of two to three million dollars. The price that the concerned person or company applying for general liability insurance has to pay is a function of the size of business and the risks that are tagged with it.

In the following section we list the types of insurance that are provided by the general liability insurance companies.

General Liability Insurance: Options

Personal and advertising injury: Such general liability insurance coverage is provided in case of any offensive activity done by the insurer or his employees. Offenses can be slander, libel, dispraise or violation of copyright laws.

Employment practices liability: This type of general liability insurance covers defense costs when the insurer or the employees are caught up in law suits.

Medical expenses: If anyone is injured on the premises of the insurer then such medical expenses are borne by the general insurance company on behalf of the insurer.

Tenants' liability: If there is damage caused due to fire or other covered reasons in the premises rented by the insurer; then insurance coverage is provided for such losses by the general liability insurance companies. In this way, the business of the insurer is shielded against financial claims arising out of such loss.


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