General Liability (GL) insurance, sometimes called small business insurance or commercial liability insurance, provides insurance coverage for your business against claims made by others including bodily injury, damage to property, or personal injury. If someone comes to your place of business and is injured, a general liability policy could cover their medical costs. If someone else’s property is damaged and you are found to be responsible, the repair or replacement cost could be covered. And if someone’s reputation is damaged by something you or an employee said or wrote about them, the associated costs could be covered.
It is a common misconception that general liability insurance covers theft of one’s own business property. Liability insurance typically covers only third party losses for which your business may bear some form of negligence. Since theft is considered a first party loss, general liability coverage does not extend to the theft of your own business property.
There are several factors that can influence the cost of a general liability insurance premium, many of which relate to the likelihood that a claim might be made. These factors include business size, location and industry, as well as things like turnover and what coverage you’ve opted to include or not to include in your policy. Insurance premiums also depend on the type of work your business conducts, which is why it's essential to work with a team like ours to get an accurate and tailored general liability insurance quote.
While it's true that both policies are geared towards safeguarding against third party suits, they do not share any other similarities. Effectively, you need both to safeguard your business. Professional liability insurance will shield advice providing employees from bearing the full costs of litigation from external parties as well as any punitive damages in the event the said suit is found to be valid. The policy, however, does not take any responsibility for damaged property or physical injuries hence the need for GL Insurance.
