Does General Liability Cover Lawsuits?
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Are Lawsuits Covered by General Liability Insurance?

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General Liability Insurance


When it comes to owning and operating a business, you need to protect your company’s employees, visitors, and consumers from accidents and injuries. In some situations, a third party could sue for personal damage, bodily damage, and more. However, having insurance could keep your business protected in these instances. The type of insurance you purchase will determine what’s covered. The insurance experts from Altra Insurance offer details about general liability insurance and whether it covers lawsuits.

Copyright Infringement

Even with the most creative design, production, and sales team in place, there could be an instance when your products and services are similar to others. Even though this is unintentional, a competing organization could sue your company for copyright infringement. This type of lawsuit can lead to significant financial expenses, including legal fees, monetary compensation, and costs related to rebranding your business. The judgment may mandate that you stop selling your products and services, which is another loss. With general liability insurance coverage, you could avoid major setbacks during and after such lawsuits.

Consumers & Visitors

Almost every business relies on customers to purchase its products and services. Even if individuals come into your store or office space to inquire about your brand but don’t make purchases, if they’re harmed or experience personal damage, they can file lawsuits against your establishment, and you’ll need to have the money to cover legal fees and other costs of fighting the lawsuits. Therefore, it’s necessary to obtain general liability insurance to protect your business in the event of third-party claims.


Marketing is critical for attracting new clients and maintaining loyal customers. The type of advertising your business practices will vary from year to year and product to product. Regardless, it’s necessary to avoid incorrect information, especially when it pertains to competitors. Using the wrong word or phrase could lead to a defamation lawsuit against your business. However, general liability insurance typically covers these claims and could prevent your business from suffering a significant financial loss.

What Isn’t Covered

Although general liability insurance covers many things, such as medical expenses, advertising claims against your business, and property damage lawsuits, it doesn’t cover every claim. Employee injuries, commercial auto accidents, illegal acts by team members, professional service errors, and other claims aren’t covered by most general liability insurance policies. The court costs, judgments, and settlements for these lawsuits will fall solely on your organization as well as partners and, possibly, investors in your company. Another factor to consider is the coverage amount of your policy and whether that changes each year. Extending a policy limit to cover the cost of a lawsuit is typically not permitted unless you have coverage like commercial umbrella insurance.

It’s vital to protect your business from avoidable dangers, and commercial insurance is one of the most valuable tools you can use to safeguard your business’s financial health. When it comes to commercial insurance, San Diego business owners can look to the professionals at Altra Insurance for sound advice based on years of experience in the insurance industry. Call one of our knowledgeable agents today at (800) 719-9972 to discuss any and all of your insurance needs. 

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