In what scenario does general liability insurance apply?

General liability insurance is designed to protect businesses against claims arising from injuries or damages that occur on their premises or as a result of their operations. This insurance is particularly relevant in scenarios where accidents happen on the business property, covering legal costs and settlements if someone is injured and holds the business responsible.

For instance, if a visitor slips and falls in a medical practice due to a wet floor without proper signage, general liability insurance would address claims arising from that incident. It covers various other risks, such as property damage or bodily injury claims made by third parties.

Other options involve situations that fall outside of the typical coverage scope of general liability. For example, illness among employees typically falls under workers' compensation, while malpractice claims are addressed through professional liability insurance. Accusations against a director do not relate to business operations directly and would typically be handled through directors and officers insurance.