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What Does General Liability Insurance Cover?

General liability insurance is designed to protect your business from financial loss when a third party makes a claim against you for injury or property damage. Here is exactly what is and is not covered.

Updated 26 March 2026

The Three Core Coverages

1

Bodily Injury

Covers physical injury to a third party (a customer, visitor, or member of the public) caused by your business operations, products, or premises. If someone slips and falls in your store, trips over equipment left at a job site, or is injured by a product you sold, your GL policy pays for their medical bills, lost wages, pain and suffering, and any resulting legal defence costs.

Covered Examples

  • Customer slips on wet floor in your store
  • Visitor trips over your equipment at a client site
  • Someone injured by a product you manufactured
  • Third party hurt during your installation work

Not Covered

  • Employee injuries (covered by workers' comp)
  • Intentional acts by you or your employees
  • Injuries in your own vehicles (commercial auto)
  • Professional errors causing health harm (E&O)
2

Property Damage

Covers accidental damage to someone else's property caused by your business operations or employees. If your contractor accidentally breaks a water pipe while working in a client's home, or your employee backs a vehicle into a client's fence, your GL policy covers the cost of repair or replacement. This coverage extends to property in your care, custody, or control only in limited circumstances.

Covered Examples

  • Contractor accidentally breaks client's window
  • Employee spills liquid on client's equipment
  • Landscaper damages sprinkler system
  • Cleaner knocks over and breaks valuable item

Not Covered

  • Your own business property (BPP coverage)
  • Intentional property damage
  • Property you are working on directly
  • Vehicle damage in transit (commercial auto)
3

Advertising Injury (Personal and Advertising Injury)

Covers claims of harm caused by your advertising activities or business communications. This includes copyright infringement in advertisements, allegations of slander or libel in your marketing materials, misappropriation of advertising ideas, and invasion of privacy claims. This is a frequently overlooked coverage that can be valuable for businesses that create content, advertise heavily, or publish information online.

Covered Examples

  • Competitor claims you copied their ad campaign
  • Defamation claim about a statement on your website
  • Copyright infringement in a blog post image
  • False advertising allegation from a competitor

Not Covered

  • Intentional infringement you knew about
  • Patent infringement
  • Breach of contract in advertising deals
  • Criminal acts related to advertising

What GL Insurance Does Not Cover

Professional Errors (E&O)

Professional Liability

Mistakes in your professional advice, work product, or services. Covered by professional liability (E&O) insurance.

Employee Injuries

Workers' Compensation

Workplace injuries to your employees. Covered by workers' compensation insurance, which is required by law in most states.

Your Own Business Property

Commercial Property

Damage to your own equipment, inventory, and business property. Covered by commercial property or business personal property (BPP) coverage.

Vehicle Accidents

Commercial Auto

Accidents involving business-owned vehicles or vehicles used for business purposes. Covered by commercial auto insurance.

Cyber Incidents

Cyber Liability

Data breaches, ransomware attacks, and cyber liability claims. Covered by a separate cyber liability policy.

Employee Discrimination Claims

EPL Insurance

Claims of wrongful termination, harassment, or discrimination by employees. Covered by Employment Practices Liability (EPL) insurance.

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