What is General and Products Liability?
General and Products Liability insurance helps protect businesses from financial loss due to claims of bodily injury, property damage, or other liabilities arising from business operations or products sold. It covers legal defense costs and damages if a customer or third party files a covered claim.
Who Needs It
This coverage is essential for businesses that interact with the public, manufacture or sell products, operate on client property, or provide services. It’s common for contractors, retailers, manufacturers, and service providers to carry this insurance to meet client or legal requirements.
What It Typically Covers
- Bodily Injury: Injuries to third parties caused by your business operations or premises.
- Property Damage: Damage to someone else’s property caused by your business or products.
- Product Liability: Claims related to faulty or unsafe products your business makes, sells, or distributes.
- Legal Defense: Costs of defending your business in court against covered claims.
Common Exclusions and Limitations
While this insurance covers many risks, it does not cover employee injuries (covered by workers’ compensation), intentional damage, or claims related to professional advice (covered by professional liability). Coverage terms and exclusions vary by policy and provider.
Factors That Influence Cost
Several factors can affect your premium, including:
- Type and size of your business
- Annual revenue and number of employees
- Claims history
- Industry risk level
- Coverage limits and deductibles
Proof of Insurance & Compliance
Many clients and partners may require a Certificate of Insurance (COI) as proof of coverage. Some states or industries may mandate specific liability coverage levels. Always check your local and industry-specific requirements to ensure compliance.
How to Get a Quote
Getting coverage is simple. Start by answering a few questions about your business to receive a customized insurance quote.
Get a General and Products Liability quote
Frequently Asked Questions
What is the difference between general liability and product liability insurance?
General liability covers injuries or damages caused by your business operations, while product liability specifically covers issues arising from products you make or sell.
Is this insurance required by law?
It depends on your state and industry. While not always legally required, clients or partners may require you to carry it contractually.
Does general and products liability cover work done by subcontractors?
Some policies may cover subcontractor work, but you often need to list them and meet specific policy conditions. Always check with your insurer.
Can I get coverage if I’ve had past claims?
Yes, but your premium may be higher depending on the nature and frequency of past claims. Insurers evaluate your risk profile when offering coverage.
How soon can I get proof of insurance?
Once your policy is active, you can usually receive a Certificate of Insurance the same day, either online or through your agent.
Still have questions? Talk to a local insurance expert.