What Does General Liability Insurance Cover? (4 Types Of Claims)

General Liability Insurance is a fundamental coverage for businesses of all sizes. Whether you’re a contractor, retailer, or service provider, having the right policy in place protects your business from unexpected financial risks. But what exactly does General Liability Insurance cover?

In this article, we’ll break down the four main types of claims covered under a standard General Liability Insurance policy.

1. Bodily Injury

Accidents happen, and if someone gets injured on your business premises or as a result of your operations, your General Liability policy can cover medical expenses and legal fees.

Example:

A customer slips and falls inside your store, resulting in a broken wrist. If they decide to sue for medical bills and other damages, your General Liability policy can step in to cover those costs.

Without coverage, your business could be held responsible for thousands—or even hundreds of thousands—of dollars in medical expenses and legal defense.

2. Property Damage

If your business operations accidentally cause damage to someone else’s property, your General Liability Insurance helps cover repair or replacement costs.

Example:

You're a contractor working on a home renovation, and one of your employees accidentally breaks a client's expensive window. Instead of paying out of pocket, your General Liability policy can cover the damages.

This coverage is crucial, especially for businesses that frequently work on customer properties, such as contractors, landscapers, and maintenance companies.

3. Personal & Advertising Injury

Lawsuits don’t always stem from physical damage—sometimes, claims arise from advertising mistakes, defamation, or privacy violations. General Liability Insurance helps protect businesses from these risks.

Example:

Your business posts an advertisement that unintentionally copies a competitor’s slogan or makes false claims about a competitor's product. If they sue for copyright infringement or defamation, your General Liability policy may cover legal defense costs.

This coverage is especially important for marketing agencies, content creators, and businesses that advertise heavily online.

4. Products & Completed Operations Liability

If your business sells products or provides services, you could be held responsible for harm caused by those products or completed work—even after the job is done.

Example:

A roofing contractor finishes a project, but a faulty installation leads to water damage in the homeowner’s attic months later. The homeowner sues for repair costs, and the contractor’s General Liability Insurance covers the claim.

This coverage is critical for manufacturers, contractors, and businesses that provide physical products or services.

Why Your Business Needs General Liability Insurance

Even small incidents can lead to expensive lawsuits and financial setbacks. Without coverage, a single claim could be enough to put your business at serious risk. General Liability Insurance gives you peace of mind and ensures you’re financially protected when the unexpected happens.