General liability insurance is the American term for public liability insurance - a business insurance which covers third-party injury or damage claims. You won’t find general liability insurance in the UK - instead, you can opt for public liability insurance, product liability insurance and employers’ liability insurance to cover your business.
If you are based in the US, you will need general liability insurance to cover your business. General liability insurance can help cover medical expenses and attorney fees resulting from bodily injuries and property damage for which your company may be legally responsible. It doesn’t cover employee injuries, auto accidents, punitive damages, workmanship, intentional acts or professional mistakes. Exactly what it covers and how it compares to public liability insurance will depend on the insurer and policy you choose.
Businesses based in the UK will need to take out public liability insurance, product liability insurance and employers’ liability insurance instead.
General liability insurance is a term used in the US when referring to the American equivalent of UK public liability insurance. However, in the UK we tend to use the term ‘General Liability’ as a generic term referring to various Liability Insurance policies available to Non-Contracting trades, i.e Public, Products and Employers liability insurance depending on your requirements. For the Construction industry we often refer to Contractors Liability – which would be a combination of Contractors Public and Employers liability insurance.
There are several considerations when buying general liability insurance. This will be a combination of your trade and the liability risks associated with it; your location, trade activities, and geographical area that you work and/or supply. For Manufacturers/Wholesalers/Retailers it will be the type of product you sell and the geographical markets you supply. A business will generally require higher liability indemnity limits where work is carried out in or goods supplied to North America. This is because of higher awards made by North American courts and the increased legal costs that are charged.
We recommend that you seek professional advice form your insurance adviser. Towergate Insurance will be able to assist you.
As with all business-related insurance policies, the following should be considered before purchasing cover:
As a UK-based insurance provider, Towergate offers equivalents to general liability insurance in the forms of public liability insurance, product liability insurance and employers’ liability insurance. We can tailor you a policy which includes the right levels of all types of liability and business insurance protection.
Read more about our liability insurance policies or call us on 0344 346 0409 to speak to a specialist adviser.
Date: August 20, 2021
Category: Small Business