What Is General Liability Insurance and Why Does Your Business Need It? 

Running a business comes with daily responsibilities and unexpected risks. One of the most common insurance policies for small and mid-sized businesses is general liability insurance.

What General Liability Typically Covers

General liability insurance focuses on third-party risks. If a customer slips and falls in your shop or if your business accidentally damages someone else’s property, this policy may help with the resulting expenses. That could include medical bills, legal defense costs or a court-ordered settlement.

It also generally includes coverage for personal and advertising injury. This can come into play if someone claims you’ve caused reputational harm, for example, through advertising or a spoken statement. While these claims might seem unlikely, they can be costly if they occur.

Why It’s Often Considered Foundational Coverage

Even businesses that don’t operate out of a storefront can benefit from general liability coverage. Contractors working at client sites, consultants meeting with customers or businesses shipping physical products all have some degree of exposure. Without coverage, a single lawsuit or injury claim could put stress on your operations or lead to out-of-pocket costs.

Many landlords, clients or event venues also require proof of general liability insurance before you’re allowed to sign a lease, secure a contract or participate in an event. Having coverage in place can help keep the business moving without delays.

Learn More

Valera Agency in Macungie, PA, helps business owners understand their general liability needs and explore policy options that align with their operations. Whether you’re just starting out or reevaluating your current coverage, we can help you determine what fits your business best. Call us today for more information.

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.