As long as you are in business, you are prone to certain accidents that are inevitable and unpredictable. All you can do is to brace yourself and be ready to deal with them effectively without derailing your business route.

According to a report released by Small Business Administration, over 90% of all operating businesses are faced with a lawsuit at a certain time while around 36% to 53% of all small businesses are usually involved in a lawsuit at least once in their operation. For now, you know what general liability insurance cover: third-party physical injury, third-party property damage, advertising harm, and reputation harm among others. But what does it not cover?

What General Liability Insurance Doesn’t Cover

Just because you got insurance coverage of all the accidents that happen in your business it doesn’t mean you relax and wait for the occurrence to happen. You have to keep on checking and evaluating whether your business has outgrown your cover. That means you have to increase the amount in your insurance policy. No matter how good your general liability business insurance is, it will never cover the following:

  • Personal injury of your employees – in case your employee gets injured, general liability insurance will not pay for the medical expenses among other expenses. That’s why you need to have workers comp/compensation insurance that caters for their medical bills and other unprecedented expenses.
  • Any damage or accident that affects your business vehicles – you may need to have insurance cover for your machinery and vehicles. This will help you not to halt business operations when the vehicles are being repaired.
  • Damage caused to your equipment and other tools – get an extra insurance cover for your tools and equipment to enable continuity of operations even when there is damage or failure.
  • Damages caused by malicious acts – you are liable for any misconduct or behavior that causes huge losses to your business.
  • Damage on the products that you manufacture or provide – in case your products get damaged in the course of manufacturing, general liability business insurance will not help you.
  • Injury on your body – you need to take an insurance cover that takes care of your accidents to avoid spending business profits.

Why Have a General Liability Insurance

You may not realize how crucial general liability business insurance is until an occurrence happens. It is essential in protecting your business and consequently in enhancing its growth. The following are some of the reasons why you should have general liability insurance:


  • Accidents in your business are costly – When it comes to dealing with the third party, you don’t have an option but to settle the claims. Whether it is bodily injury, reputation harm or product damage, you will need large amounts of money to settle their claims.
  • Lawsuits can make you break your bank – things like reputation harm or infringement of copyrights can land you in hot soup. When the case lands to court, you have to cater to the attorney and court fees.
  • Your clients want safety – your customers feel secure when they know even if their property is damaged, general liability business insurance is there to settle the claims.
  • It is an indicator of seriousness – insurance can make the clients see that you are serious, professional, and responsible.
  • It attracts new customers to your business.



The importance of having general liability business insurance cannot be overemphasized; it can only be discovered when a lawsuit or accident occurs. Ensure your business is insured before starting your operations.