With a business comes business insurance, the most basic of which is the Business Owners Policy or BOP insurance. In that insurance are three major parts: one protects your assets (Business Property Insurance), one protects your income (Business Income Insurance), and the third protects your liabilities. This third, General Liability Business Insurance, is considered a form of comprehensive commercial liability insurance, but it’s important to understand the gaps that might exist for your business.

What Does Commercial General Liability Insurance Cover?

At its most basic, commercial general liability insurance helps shield your business from the risk of lawsuits, providing coverage for claims of bodily injury, personal injury, and property damage against your business—be it due to its operation, products, or injuries that occur on your property. Specifically:

• Physical Injury: Any business-related incidents that result in bodily injury to a third party, such as a customer slipping and falling on a business’s premises.
• Property Damage: Property damage to third parties is also covered under this policy, such as a landscaping company’s lawnmower that skipped a loose rock through a client’s window.
• Legal Defense Costs: This insurance covers legal costs when lawsuits occur, including attorney fees and settlement costs.
• Libel, Slander & Advertising Injury: Written or spoken defamation, as well as advertising that harms individuals or businesses.

What Kinds of Liabilities Aren’t Covered by General Liability Insurance?

As mentioned above, while this insurance covers most forms of liability your company will see, it doesn’t cover all. Some are specific to certain industries, such as damages due to intoxication at an alcohol-related business or causing pollution through operation or dumping. However, there are some additional coverages every business should look at that aren’t covered by general liability insurance:

• Employee Injury: Employee injuries, medical costs, and disability benefits that a company is liable for are covered under Workers Compensation Insurance, which is required for MA businesses.
• Errors or Omissions: Professional mistakes, advice, and services aren’t covered under these policies either, thereby requiring professional liability insurance, which is sometimes known as errors & omissions insurance.
• Commercial Auto Liability: Liabilities due to commercial vehicles or personal vehicles used for work need to be covered by their own commercial auto insurance.

Finding the right commercial policies, especially for the specific laws of Massachusetts, doesn’t need to be hard. At Safeside Insurance, we’ve been helping small businesses of all sizes in Worcester County and the greater Massachusetts area for over 30 years! We’ll help you find the best policies for your specific business through all our carriers, whether you’re just getting started, growing your business, or better preparing for an emergency. Contact us today to get the help you need.