What does liability insurance cover?

Liability insurance policies cover any legal costs and payouts an insured party is responsible for if they are found legally liable. Intentional damage and contractual liabilities are generally not covered in liability insurance policies. Unlike other types of insurance, liability insurance policies pay third parties, and not policyholders.

What is business liability insurance?

Business liability insurance protects the financial interests of companies and business owners in the event that they face formal lawsuits or any third-party claims. Such policies cover any direct financial liabilities incurred, as well as any legal defense expenses. The three main types of business liability insurance are:

What does general liability insurance cover?

General liability insurance, also known as commercial general liability (CGL) insurance, provides coverage for bodily injury, property damage, personal and advertising injury, and medical payments arising from business operations. This coverage is essential for most businesses and can protect against a wide range of common claims.