What is a General Liability (GL)?

Executive Summary

General Liability (GL) protects against third-party claims for bodily injury, damages to
defamatory property or advertising. It's the shield that most GC/Builders request in
contracts and tenders.

The essentials

• It covers claims from third parties (not employees).
• Typical limits: $1M per occurrence / $2M aggregate.
• Usual Endorsements: Additional Insured, Primary & Noncontributory, Waiver of Subrogation.

Key GL Coverages

•  Premises/Operations: workplace accidents.
•  Products/Completed Operations: claims for completed work.
•  Personal & Advertising Injury: defamation/use of image.
•  Damage to Premises Rented to You.

Real example

A pipe bursts and causes water damage to an installed floor. The GL can respond to
Owner/GC claim (according to policy, deductibles and exclusions).

Checklist for contracts

• Check limits required by contract.
• Confirm required endorsements (AI/PN/WOS).
• Request updated COI with exact wording.

Common mistakes

• Trusting the IOC without reading the policy.
• Do not update ratings/operations when the business grows.

FAQs

Does GL cover my employees?
No. Employee injuries are covered under Workers' Compensation.
Does it cover damage to "your work"?
It is usually limited; check specific exclusions such as 'your work'.