What to do when a customer gets injured at your business

In this Article:

• What is General Liability Insurance?
• Why General Liability Insurance is important
• Key Components of General Liability Insurance
• Understanding Bodily Injury Liability
• Understanding Property Damage Liability
• Understanding Personal and Advertising Injury Liability
• Steps to take when someone gets injured at your business
• Legal considerations after an injury
• How to prevent accidents and injuries
• The cost of General Liability Insurance
• Exclusions to keep in mind
• Conclusion

Imagine a customer browsing in your store, only to trip on an uneven surface and sustain an injury. This type of scenario is every business owner’s nightmare. Not only can such incidents lead to medical emergencies, but they also expose your business to potential lawsuits and financial strain. How you respond—and whether you have safeguards like general liability insurance in place—can determine the long-term impact on your business.  

General liability insurance is a cornerstone of risk management for businesses of all sizes. It provides protection against claims arising from bodily injuries, property damage, and even advertising-related disputes. This guide will explain some of the ins and outs of this insurance, its importance, and how to effectively manage customer injuries to protect your business and reputation.  

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What is General Liability Insurance?  

General liability insurance is a foundational policy designed to protect businesses from financial loss due to claims of bodily injury, property damage, or personal injury. It acts as a safety net, allowing your business to remain operational even when accidents occur.  

For example, if a customer slips and falls on your premises or if an employee accidentally damages a client’s property, this insurance could help cover repair or replacement costs, medical costs, legal fees, and settlements.  

General liability insurance is sometimes called commercial general liability insurance or commercial liability insurance. You can learn more about what it covers – and what it doesn’t - here.  

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Why General Liability Insurance is important

Without general liability insurance, your business could face significant financial strain from lawsuits related to bodily injury, personal injury or property damage claims. This type of policy is designed to cover legal fees, medical costs, or settlements, protecting your hard-earned assets.

Some types of businesses are required to carry general liability insurance. Meeting this requirement may keep you compliant with laws and licensing requirements and helps build trust with clients and partners. It’s a smart and sometimes mandatory investment to protect your business operations.

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Key Components of General Liability Insurance

• Bodily Injury Liability: Covers claims for physical injuries sustained by third parties (not you or your employees) due to your business operations.
• Property Damage Liability: Protects against claims for damage to third-party property caused by your business activities.
• Personal and Advertising Injury Liability: Covers claims related to defamation, libel, or slander, or copyright infringement claims.
• Medical Payments Coverage: Pays for medical expenses for injuries that occur on your property, to someone other than you or your employees, regardless of fault.

Learn more about these components here.

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Understanding Bodily Injury Liability

Bodily injury liability is a key component of general liability insurance that covers medical expenses, legal fees, and settlements when someone is injured due to your business activities. This coverage offers financial protection against a claim or lawsuit by the injured party.

For instance, a customer might trip over an uneven carpet in your store and sustain a broken ankle, or a heavy product might fall from a shelf and injure a shopper in your warehouse. These types of incidents can be financially draining without the right insurance to handle the associated costs.

General liability insurance can cover the medical costs of someone who is injured, as well as their lost wages if they are unable to work due to their injuries.

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Understanding Property Damage Liability

Property damage claims are another common scenario. For example, if an employee unintentionally damages a client’s furniture or other belongings while performing a service, for example, your general liability insurance could cover the repair or replacement costs.

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Understanding Personal and Advertising Injury Liability

Libel and slander claims may arise if statements made by your business cause harm to another party’s reputation. Such claims can lead to expensive legal battles, making the protection offered by general liability insurance invaluable.

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Steps to take when someone gets injured at your business

When someone gets injured on your premises, your first step should be to respond immediately to their needs. Assess the situation and, if necessary, call for medical assistance right away. Prompt action can minimize the severity of the injury and show the injured party that you care about their well-being.

Make sure the surrounding area is safe to prevent further accidents. Cordoning off the space or addressing any hazards on the spot can help contain the situation.

Documenting the incident is crucial for both legal and insurance purposes. Gather as much information as possible, including statements from witnesses, photographs or videos of the scene, and a detailed description of the event. Proper documentation will be invaluable when filing a claim or defending your business if legal action is taken.

Notify your insurance provider promptly to ensure the claims process begins without delay. Accurate and timely reporting helps prevent complications and ensures that the injured party receives compensation as quickly as possible. To understand the claims process better, explore Hiscox’s claims guidance.

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Legal considerations after an injury

If an accident happens that results in an injury, the injured person may file a lawsuit. General liability insurance can cover legal fees and settlements, helping your business navigate these challenging situations. Lawsuits can be stressful and time-consuming, but having insurance in place allows you to focus on running your business while your provider handles the legal intricacies.

Disputes can sometimes be resolved through settlements rather than prolonged court battles. Settlements are often quicker and less expensive, and your insurance policy may cover these costs without jeopardizing your business finances.

General liability insurance that includes defense costs has another advantage as well. Typically, the insurance company will provide a lawyer to represent you, and it will be someone with experience in the type of claim you are defending.

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How to prevent accidents and injuries

Preventing accidents and injuries starts with implementing safety measures throughout your business premises. Conduct regular inspections to identify hazards like wet floors, loose wires, or poorly maintained equipment. Keep hallways and aisles clear.  Addressing these risks promptly not only protects your customers but also reduces your exposure to potential claims.

Training employees to handle emergencies and prioritize safety is another crucial step. Well-trained staff can respond effectively to incidents, minimizing injuries and demonstrating a proactive approach to safety. Empower your team with knowledge about workplace hazards, emergency response protocols, and the importance of maintaining a secure environment for everyone on your property.

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The cost of General Liability Insurance

The cost of general liability insurance varies depending on factors such as your industry, the size of your business, and the coverage limits you choose. It’s essential to shop around and compare quotes to find a policy that fits your needs. For a detailed look at costs, refer to Hiscox’s cost analysis.

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Exclusions to keep in mind

General liability insurance does not cover every scenario. For instance, it won’t protect against intentional harm caused by your business or employees. Additionally, professional errors and omissions are not included under this policy. If your business provides specialized services or offers advice, you may need professional liability insurance to fill this gap.

General liability insurance does not cover losses from cyber-related incidents like malware and data breaches. These kinds of losses can be covered by cyber security insurance. And workers compensation insurance is needed to cover injuries to your employees.

Understanding these exclusions ensures you are not caught off guard and can plan for any additional coverage your business may require.

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Conclusion

Accidents can happen in any business, regardless of size or industry, but general liability insurance provides a vital safety net. By covering bodily injury liability, property damage, and other risks, it allows your business to thrive even in challenging situations.

Take the time to review your policy and ensure it meets your needs. For more information and tailored solutions, visit Hiscox’s general liability insurance page.

You can also call 1-866-283-7545 to speak with a licensed agent, Monday–Friday, 7 a.m.–10 p.m. ET.

Protect your business today. By taking these proactive steps, you can create a safer environment for your customers and safeguard the future of your business.

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