On a day to day basis, it’s likely that you and your employees are interacting with many people - such as clients, vendors and contractors, to name a few. Any one of them could experience an injury or loss. If your business is the cause they can file a lawsuit against it.

General Liability Insurance is a business insurance policy that is applicable to most contractors and business owners because it protects them. When a business has this type of insurance policy, they're covered when it comes to claims of bodily injury, associated medical costs and damage to property that occurred as a result of your business operations.

It also covers legal defense costs, along with settlements and judgments should you be successfully sued. If you are a tenant who causes damage to a property that you rent (like, for example, a fire), that’s another situation where under a General Liability Insurance policy, you’d be covered. Lastly, these types of policies cover claims of false or misleading advertising. That could include libel, slander or copyright infringement.

This type of insurance is often referred to as “Business Liability Insurance” or “Commercial Liability Insurance.” Call it whatever you’d like, but just make sure you have this policy in place - because not doing so could prove very costly.