General liability insurance is often described as “basic coverage.” That label is misleading. General liability is not broad protection against everything that could go wrong. It is a specific tool designed to handle defined third‑party risks. When businesses misunderstand what it does—or assume it covers more than it actually does—coverage gaps are almost guaranteed. This page explains what general liability insurance is meant to do, where its limits are, and how it fits alongside other forms of business insurance coverage . What General Liability Insurance Actually Covers General liability insurance responds to claims made by third parties —people or organizations outside your business—who allege harm caused by your operations. Coverage typically applies to: Bodily injury to non‑employees (slips, falls, accidents) Property damage to third‑party property Personal and advertising injury , such as libel, slander, or copyright infringement in advertising Legal defense costs related to covered claims It’s important to note that coverage applies only when a claim fits the policy’s definitions, conditions, and exclusions. The presence of a policy does not guarantee a covered outcome. What General Liability Does Not Cover Understanding exclusions is just as important as understanding coverage. General liability insurance does not cover: Injuries to employees, which are handled through workers’ compensation insurance Professional errors, advice, or service failures addressed by professional liability insurance Damage to your own buildings or equipment, which falls under commercial property insurance Auto‑related accidents involving business driving, covered by commercial auto insurance Cyber incidents, data breaches, or ransomware events handled by cyber insurance Many of the most expensive business losses fall outside general liability. Assuming otherwise is one of the most common insurance mistakes businesses make.