Short answer
General liability insurance covers claims that your business caused bodily injury or property damage to someone else, along with related legal costs and certain advertising-injury claims. It does not cover your own employees' injuries or professional mistakes, which fall under workers' compensation and professional liability instead.
General liability insurance is the foundation policy most small businesses carry. It responds when a third party, such as a customer or vendor, is hurt or has property damaged in connection with your operations, and it pays defense costs even when a claim is disputed.
It has clear boundaries. Employee injuries go to Workers' compensation insurance, errors in professional services go to Professional liability insurance, and damage to your own property goes to a commercial property policy. Many businesses combine general liability with those coverages to close the gaps.
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