Personal Liability vs General Liability Insurance
May 25, 2023
If you're confused about personal liability insurance versus general liability insurance coverage, don't worry – Nsurance Nation has you covered. While personal liability insurance is aimed at individuals and their households, general liability insurance is tailored for businesses.
Personal liability insurance is essential for homeowners as it protects against claims of bodily injury or property damage where a homeowner or their family members for which you are personally held responsible. This coverage is commonly included in homeowners, renters, and condo insurance policies.
On the other hand, general liability insurance, also known as commercial general liability insurance, is designed for businesses and provides protection from claims related to bodily injury or property damage caused by business operations. If you own a business, general liability insurance is crucial as it helps protect against potential claims that can arise from everyday business activities.
This kind of insurance doesn't cover intentional damages or accidents involving vehicles or watercraft. Additionally, some employers or clients may require you to have professional liability* as well as general liability insurance, so it’s important to keep that in mind when negotiating contracts.
So, do you need both types of insurance?
While both provide protection against claims involving injuries and property damage, they cover different situations. So, if you have both home and business-related risks, then the answer is a resounding YES.
Regardless of the size of your company, it is crucial to have the right coverage to protect yourself and your assets. Commercial general liability is vital for small business owners in Florida. Keep in mind, however, that it doesn't cover intentional damages or incidents involving cars, boats, or planes.
Personal liability insurance comes in handy if, for example, you accidentally damage your neighbor's property or if someone slips and falls on your property and injures themselves. Personal liability coverage does not apply to accidental injuries or damages you cause to yourself or your family.
What Personal Liability Can Cover
Personal liability insurance may cover the following incidences:
- Injuries on Your Property – If you're legally responsible, your personal liability coverage may help pay for someone else's injuries that occur on your property up to the limits of your policy.
- Damage to Others Property – Applies if you or your household relatives are at fault for the damage. For instance, your child hits a baseball through a neighbor's expensive stained-glass window.
- Lawsuits and Fees – If you're sued over an accident, your personal liability coverage may help pay for a lawyer and legal expenses, as well as any settlements against you.
- Dog Bites – Check with a Nsurance Nation agent to see if your carrier covers dog bites. Many insurers won't cover dog bites, while others may limit coverage to certain breeds.
Claims could include medical and legal expenses, as well as costs for unintentional damage policyholders or their family members may be held liable for on someone else’s property. It is usually included in a homeowners or renter’s insurance policy.
What General Liability Can Cover
General liability business policies typically cover the following types of claims:
- Bodily Injury – Claims for medical expenses, lost wages, and pain and suffering resulting from injuries caused by the business or its employees.
- Property Damage – Claims for the cost of repairing or replacing property that is damaged by the business.
- Advertising Injury – Claims against the business for damages arising from false or misleading advertising.
- Lawsuits & Fees – Most policies also include coverage for the cost of defending the business against lawsuits, as legal fees can add up quickly.
If you are considering starting a business, or if you already have a business, it is important to talk to an independent insurance agent at Nsurance Nation about general liability insurance. It can help protect your business from financial ruin in the event of a lawsuit and is important for businesses of all sizes.
*NOTE: Professional liability insurance covers more abstract risks, such as errors and omissions in the services your business provides.
Get the Best Coverage at Nsurance Nation
As we have already pointed out above, there are distinct differences in the coverage provided by personal liability insurance and commercial general liability insurance. The right homeowners or renters liability policy can help protect you from financial ruin in the event of a lawsuit, and it is among the most important types of personal insurance coverage.
Having the right liability insurance coverage can protect you, your family and your business from significant financial losses resulting from accidents and other incidents if you are legally deemed responsible for damages. Both personal liability insurance and commercial general liability insurance can help pay for mounting legal fees and damages if you are sued.
Whether you are purchasing a home or running a business, either can require a significant investment – maybe the biggest financial event in your life. So having the right insurance coverage is essential. At Nsurance Nation, our independent agents can customize your coverage for many different perils to protect your financial future with the right protections.
Nsurance Nation provides expert guidance in navigating regulatory processes for Florida insurance compliance and can help you stay fully protected at home and at work. Visit our homeowners or business insurance page to learn more about personal and commercial liability insurance coverage at affordable rates.
