General Liability policies can cover a broad range of events. If you are sued by a third party for one of these covered events, the policy pays attorney fees, court costs and witness expenses. It may also cover settlements, judgments and any court-ordered compensation up to stated policy limits.
Using a restaurant owner as an example, here is a list of the events a GL policy typically covers:
- Bodily Injury: covers medical expenses, loss of services, funeral expenses and court-ordered compensation when your business is found to have injured a customer or another non-employee.
- Property Damage: pays to repair or replace damaged property when your business is found to be responsible for the damage.
- Completed Products: covers situations when a customer claims your product or service caused physical harm or property damage.
- Contract Liability: protects small businesses that enter into certain contracts, like a building lease, when they typically assume a degree of liability.
- Personal and Advertising Injury: covers damages that may arise from copyright or brand infringement, unlawful eviction, libelous or slanderous material, malicious prosecution and privacy violations.
- Liquor Liability: While this insurance will not cover a business that manufactures or sells alcohol as its primary function, it may cover alcohol-related accidents when you serve alcohol at a business event (like the holiday party).
- Medical Expense Coverage: differs from Bodily Injury coverage in that it provides compensation for small, immediate expenses when a non-employee is injured by your business.