Common General Liability Claims and How to Avoid Them

General liability insurance is a cornerstone of risk management for many businesses, potentially offering financial protection against a range of third-party claims. These policies can address many common incidents and may be applicable to the coverage needs of companies across all sectors. Still, in addition to securing coverage, you can also take steps to limit your risk of needing to file a claim against your policy by understanding common types of claims.

5 Common Claims Your Business May Face

When composing risk management plans and implementing appropriate safety precautions, consider the following frequent general liability insurance claims and how you might be able to reduce their likelihood of occurring:

1. On-site slips and falls—These are among the most frequent claims. Whether it’s a customer slipping on a wet floor or tripping over loose carpeting, these incidents can lead to significant medical and legal expenses. Regularly inspect and maintain walkways, install clear signage for wet areas, and ensure proper lighting throughout your premises.
2. Third-party property damage—If your business operations accidentally damage a client’s property—say, a contractor breaks a window during a home renovation—you could face a liability claim. Train employees on careful handling of equipment and materials, and consider using protective coverings in sensitive areas.
3. Product liabilities—If a product you sell causes injury or damage, your business could be held responsible. Implement strict quality control processes and maintain clear, accurate labeling and usage instructions.
4. Advertising injuries—Claims can arise from alleged copyright infringement, defamation, or misleading advertising. Review all marketing materials for compliance and originality, and consult legal counsel when in doubt.
5. Off-site incidents—Even outside your premises, your business activities can cause harm, such as if an employee damages a client’s home or business property while conducting work. Ensure all employees are trained in safety protocols and maintain equipment responsibly.

Get the Right Coverage

Contact Ensured Advantaged in Ensured Advantaged, today to learn more or get a free general liability insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.