General Liability Insurance in Texas

What is general liability insurance?

Businesses often face risks that are specific to their operations, but they also face many general risks that are common to all industries. For those general risks, Texas businesses can get protection through general liability insurance.

General liability insurance provides protection across a broad range of risks. It’s a business insurance that almost every business should have.

What Texas businesses should purchase general liability coverage?

Most Texas businesses should have general liability coverage in place. Without it, just a basic accident could financially ruin a company. This is insurance that businesses ought to consider regardless of size, industry, location or corporate structure.

What protections are included within general liability coverage?

General liability policies typically come with several sub-coverages that outline the specific protections a policy affords. These specific protections can include the following:

Does general liability coverage extend to injuries and property damage that products cause?

Should products that a business makes or sells cause harm to someone, the business might be held financially liable for any injuries or damage caused. 

Whether these incidents are covered by a general liability policy depends on the terms of the particular policy. Some policies provide a little coverage for product-caused harm, but not all do. Those that do frequently limit the coverage.

Many businesses that make or sell products should consider purchasing a product liability insurance policy, in addition to a general liability policy. A product liability one will usually provide much more protection for product-caused harm.

Again, this is coverage that a knowledgeable insurance agent can help businesses sort out.

Does general liability coverage extend to injuries that employees sustain while working?

General liability policies normally cover injuries only when third parties sustain them. Third parties are typically defined as persons who don’t work for a company, such as customers, vendors, visitors, passersby, etc. Employees might be classified as third parties if they visit a business’ location during non-working hours (e.g. a chef dining at their restaurant).

Workers’ compensation can be used to cover most employee injuries. Workers’ compensation technically isn’t required in Texas, but it’s highly recommended.

What expenses does general liability pay for covered claims?

In the event of a covered claim, general liability policies tend to help pay attorney fees, court fees, settlements and judgments. Policies typically begin paying these expenses when a claim or lawsuit is filed, regardless of the suit’s outcome. The insurance usually has a vested interest in defending a business, so they hopefully don’t have to pay a major claim.

This is in line with what most liability policies pay when there’s a claim that they cover.