Running a business comes with a fair share of responsibilities—and risks. Whether you’re operating a local shop, contracting services, or managing a growing enterprise, commercial liability insurance (also known as general liability insurance) is one of the most critical policies you can have in place.
At Eugene C. Yates Insurance Agency, we’ve been helping Sacramento businesses protect their operations for over 75 years. Here’s what you need to know about what commercial liability insurance covers—and why your business might need it.
1. Bodily Injury Coverage
Accidents happen—even in the safest environments. If a customer slips and falls on your premises, or is injured due to your services, your policy helps cover:
- Medical bills
- Legal fees
- Settlements or court awards
Example: A customer trips over an uneven floor tile in your store and suffers a broken wrist. Your general liability policy steps in to handle the claim.
2. Property Damage Coverage
If your business activities accidentally damage someone else’s property, this coverage helps pay for repair or replacement.
Example: A contractor drops a tool and shatters a client’s window. Rather than pay out of pocket, your policy covers the damages.
3. Personal & Advertising Injury
This covers non-physical injuries your business might be held liable for, such as:
- Libel or slander
- False advertising
- Copyright infringement
Example: A competitor sues your business, claiming your ad campaign unfairly misrepresents their brand. Your policy helps cover legal expenses.
4. Products & Completed Operations
If a product you sell or a job you complete causes injury or damage after the fact, you’re still covered.
Example: A faulty electrical job causes damage weeks after completion. Your commercial liability insurance covers the claim.
5. Legal Fees & Court Costs
Even if a lawsuit is groundless, defending your business can be expensive. General liability insurance helps cover:
- Attorney fees
- Court costs
- Settlements or judgments
What Isn’t Covered?
While commercial liability insurance offers broad protection, it doesn’t cover everything. Here’s what’s not included:
- Employee injuries – You’ll need workers’ compensation insurance for that.
- Professional mistakes – These are covered under professional liability (E&O) insurance.
- Damage to your own property – That requires a commercial property insurance policy.
Protect Your Business—Affordable Coverage Starts Here
Whether you’re a new startup or a seasoned Sacramento business owner, having the right coverage in place is essential. At Eugene C. Yates Insurance Agency, we tailor your policy to your industry, size, and risk profile—so you’re not overpaying or underprotected.
Get a free, custom commercial liability insurance quote today—and safeguard the business you’ve worked so hard to build.
📞 Call us or stop by our Sacramento office. We’re happy to help!