Over 75% of small businesses don’t’ have sufficient coverage. This makes it hard for the majority of them to reopen once disaster strikes.

As a business owner, your finances are always at risk. Without proper coverage, you have to pay for legal expenses and claims when faced with a lawsuit. You can protect your business by investing in a liability policy.

General Liability Insurance protects your business against damages resulting from third-party claims. This can be injury, advertisement injury, and third-party property damage.

In this article, we highlight key aspects of a Business Liability Policy. Firstly, what coverage does it provide? And secondly, what is excluded? You need to hear both sides of the story.


1. Property loss and bodily injury
If a third-party gets injured while on your property, your policy should cover their medical costs. Similarly, your insurer should cover the cost of third-party property damage, loss, repair, and replacement.

2. Professional liability
This coverage protects professionals. So, if your services or advice results in injury or property damage, you may be held liable.

3. Product liability
This coverage protects your company from liability if any of the products you produced or manufactured cause injury or damages.

4. Advertisement injury
It protects your company from claims that your advertising activities resulted in the invasion of privacy, libel, slander, and copyright infringement.

You’ll be pleased to know that your Liability policy will cover medical expenses, cost of property damage, legal fees, settlement costs, and the administrative costs to handle claims.


Errors and omissions. The policy does not cover any lawsuits arising from neglect or failure to perform your professional duties.

Intentional injury or property damage. The policy does not cover any damage or injury caused willfully.
Directors and officers. The policy does not cover directors and company officials from lawsuits arising from malpractice, the unlawful release of information, erroneous investments, gross negligence, failure to maintain the property, and conflict of interest.

Employee injury or illness. Company employees are not covered by a General Liability policy as it is for third-party claims, employees and owners have a different coverage called Workers Compensation Insurance.

Author's Bio: 

Crissa works as an Insurance Producer at FarmerBrown.com and ContractorsLiability.com. Their team specializes in business and Contractors' insurance coverage no matter the size and class. You may contact her or the team at Farmerbrown.com on (888) 838-3116 for any insurance needs or email directly at crissa@farmerbrown.com and let her know you've read this article!