5. Medical Payments Coverage
This part of the policy covers immediate medical expenses for injuries sustained by a third party on business premises, regardless of fault. It helps prevent minor incidents from escalating into lawsuits.
Example: A customer suffers a minor cut at a grocery store and needs stitches. The insurance covers the cost of medical treatment.
Exclusions: What General Liability Insurance Does Not Cover
While GLI provides broad protection, certain risks are not covered under standard policies. Businesses may need additional insurance for the following:
- Professional Errors: Coverage for mistakes in professional services requires Errors & Omissions (E&O) Insurance.
- Employee Injuries: Workers’ Compensation Insurance covers workplace injuries to employees.
- Intentional Acts: Deliberate harm caused by a business or employee is not covered.
- Auto Accidents: Commercial Auto Insurance is needed for vehicles used for business.
- Product Liability: Product recalls or defects require Product Liability Insurance.
- Cyber Liability: Data breaches and cyber threats require separate Cyber Liability Insurance.
Who Needs General Liability Insurance?
Virtually every business, regardless of size or industry, can benefit from GLI. However, the need for coverage is especially critical for:
- Retail stores and restaurants (high customer interaction)
- Construction companies (property damage risks)
- Consulting firms and agencies (advertising injury risks)
- Manufacturers and wholesalers (product-related liabilities)
- Healthcare providers (risk of bodily harm claims)
- Event planners and venues (high exposure to public liability)
