What is general liability (GL) insurance?

According to AM Best, general liability (GL) insurance is “designed to protect business owners and operators from a wide variety of liability exposures. Exposures could include liability arising from accidents resulting from the insured's premises or operations, products sold by the insured, operations completed by the insured, and contractual liability.”

As an agent, you most likely have an extensive understanding of the different types of GL coverage as well as the different additions each client might need. However, do your clients really know what general liability insurance is and why they need it? That is the real trick when selling insurance: explaining coverage in a way that is clear to the client but is also specific enough to ensure the client knows what they are getting.

When offering GL to your clients, make sure to itemize the major coverage areas. It is scary to hear that, as a business owner, you could be held responsible for injuries, even deaths, connected in any way to your business or property. Most people don’t even consider this side of things. Who wants to think that their business might cause serious bodily harm or even death to someone? GL gives the client peace of mind.

One tip is to incorporate interesting anecdotes when speaking to your clients about GL insurance. Below are a few examples of common GL claims:

- Injuries or deaths on job sites or at the business location

- Injuries or deaths attributed to a company’s product

- Libel, slander or defamation of character

- Property damage

Here is one example you can cite while talking to your service clients: while fixing an ice machine, one of your client’s employees accidentally allowed water to leak on the kitchen floor. Later, when the homeowner walked through the kitchen, she slipped in the water, fell and sprained her wrist. Is your client liable? Insurance is designed to safeguard and defend against situations like this.

It is important as an agent to help simplify why your clients need certain types of insurance. If you can show the necessity by tailoring the explanation to make it personal, you will help your clients make the right decision and have the right protection.