Does General Liability Insurance Cover Property Damage or Injuries?

If you own a business, general liability insurance is one of the first policies you should consider. Understanding its purpose can help you know what financial protection you actually have.

What General Liability May Cover

General liability insurance responds when your business is held responsible for harming someone else, damaging their belongings or causing certain reputational harm through your advertising.

Common covered scenarios include:

• A customer slips and falls at your place of business and requires medical attention.
• An employee accidentally damages a client’s equipment while working on-site.
• A product you sell causes injury to a buyer.
• Your business’s advertising or marketing content leads to a claim of libel, slander or copyright infringement.

What General Liability Does Not Cover

This policy does not cover injuries to your own employees, which is what workers’ compensation addresses. It also does not cover damage to your own property or business equipment. Professional mistakes, such as errors in advice or services, fall under professional liability insurance instead.

Why Policy Limits Matter

General liability policies carry coverage limits, and those limits define how much your insurer may pay per occurrence and in total for the policy period. A claim that exceeds your limits leaves your business responsible for the remainder. Reviewing your limits regularly, especially as your business grows, can keep your coverage aligned with your exposure.

Get Covered Today

General liability insurance is a foundation, not a complete solution on its own. Contact Ann Arbor Insurance Associates LLC today to review your current coverage, identify any gaps and make sure your insurance portfolio reflects the scope of your operations. We serve businesses in Ann Arbor, MI and are ready to help you build an optimal policy.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.