General Liability insurance provides coverage for an insured when their negligent acts or omissions result in bodily injury or property damage, whether on the insured’s business premises, when someone is injured as the result of using a product manufactured or distributed by the insured’s business, or if someone is injured in the general operation of the insured’s business.  However, this coverage does not apply to property in the care, custody, or control of the insured – a separate coverage for voluntary property damage would need to be purchased to cover this risk.

Example 1: Insured is a plumber, working on repairing a sink in their customer’s home.  A wrench falls out of his pocket, damaging the ceramic tile floor in their customer’s bathroom.  The General Liability insurance policy would pay to repair their customer’s floor, as the policy covers property damage resulting from the insured’s acts.

Example 2:  Insured is a plumber, working on repairing a sink in their customer’s home.  A wrench falls out of his pocket, chipping the customer’s porcelain sink, before falling to the ground and damaging their ceramic tile floor.  The insurance company would pay for damages to the flooring, but not to the sink, as the sink is considered in the insured’s care, custody, or control, as he was hired to work on the sink.  If the insured had voluntary property damage coverage, the insurance company would also pay for damages caused to the sink under this coverage.

General Liability coverage also provides legal defense in the event a suit is brought against the insured for a claim that is covered under their General Liability insurance policy.  The insurance carrier will provide legal defense for their insured, but may at their discretion investigate any occurrence and settle any claim or suit that may result.


Contact a representative from Indianhead, Dowd-Reliance, or County Line today for more information on General Liability insurance offered in Northwestern Wisconsin.