What does general liability insurance cover?

General liability insurance is designed to provide comprehensive coverage for a range of claims that can arise during the course of business operations. This type of insurance specifically addresses bodily injury and personal injury claims, making it a crucial protection for businesses against lawsuits and claims involving third parties.

Bodily injury refers to physical harm suffered by individuals due to the negligence or accidental actions of the insured party, while personal injury encompasses non-physical harm, such as defamation, slander, and invasion of privacy. This broad coverage is essential for businesses, as it helps them manage legal risks associated with their operations, ensuring that they can defend against claims and cover settlements or judgments.

In contrast to general liability insurance, the other options are more limited in scope. Property damage claims can be covered under different types of insurance, such as commercial property insurance. Claims arising from employee injuries typically fall under workers' compensation insurance, which is separate from general liability coverage. Claims related to product defects may indeed lead to legal action and can sometimes fall under general liability, but product liability insurance is specifically designed to cover risks associated with product-related claims.

Therefore, the coverage provided by general liability insurance is extensive and crucial for businesses, as it protects against both bodily injury and personal injury claims, providing critical