What Is General Liability Insurance Coverage
As a healthcare provider, you know that your facility can encounter legal claims that may pose significant financial threats. General liability insurance provides financial protection for allegations of negligence that result in harm to others by covering costs associated with those claims. Understanding the scope of general liability insurance is essential for ensuring protection against unforeseen financial liabilities resulting from unintentional harm to non-patients.
As we proceed, we'll discuss the specifics of general liability coverage and highlight its importance in maintaining your financial stability by transferring the risk for related claims.
What Is General Liability Insurance?
General liability insurance protects businesses from various risks, including bodily injury to others, damage to the property of others, and personal injuries to others. Examples include slips and falls within your facility, losing a patient’s dentures, defamation, libel or slander. General liability does not cover professional errors (malpractice), damage to your own property, or employee injuries. General liability coverage protects against allegations of your negligence to third parties. For healthcare facilities, it provides financial protection against the cost of legal fees to defend a claim and payments to third parties (for jury awards or settlements) when you are negligent. It allows you to stay focused on operations without financial disruptions.
What Does General Liability Cover?
Bodily Injury
If someone is injured on your premises and alleges those injuries are due to your negligent operations, this insurance can help cover medical expenses, legal fees, judgments or settlements. Injuries to patients that are not related to professional services, vendors, visitors and other third parties are covered.
Property Damage
If your operations cause damage to someone else’s property, this insurance helps cover the repair or replacement costs.
Medical Payments
General liability coverage also provides a limited benefit for minor medical expenses for non-employee injuries that occur on your facility grounds or due to your facility’s operations. It is intended to provide first aid or immediate medical attention to stabilize an injured party and determine the nature of injuries resulting from the incident.
Personal and Advertising Injury
Personal and Advertising injury covers claims arising from non-physical injuries arising from copyright infringement, defamation of character, libel or slander. Examples include using someone else’s copy in your advertising/website or causing reputational harm. This coverage shields your business from potentially costly lawsuits and legal defense costs.
Legal Costs
Legal costs can be daunting, but general liability insurance helps cover these expenses. From hiring attorneys to courts and judicial interest, this insurance secures your business's financial stability defending you against allegations of negligence while protecting your reputation. This is essential to protect against long-term financial risks and ensure you can continue treating patients without interruption.
What Doesn’t General Liability Insurance Cover?
Employee Injuries
General liability insurance does not cover employee work-related injuries or illnesses. Healthcare organizations need workers' compensation coverage to ensure employees are compensated for medical expenses and lost wages if they are injured on the job. State statutes also require employers to provide workers’ compensation to injured employees.
Property Damage to Facility Premises
Damage to your own property is not covered by general liability insurance. Commercial property insurance provides financial protection to your building or other physical property against damage from covered perils such as hurricanes.
Intentional Acts
General liability insurance policies do not cover acts of intentional harm or fraud. Liability coverage protects against accidental injuries and damages, not those caused intentionally.
Employment Practices
Claims associated with wrongful termination, harassment or discrimination are not covered by general liability insurance. For protection against such employment practices liability, healthcare organizations must consider employment practices liability insurance (EPLI). This insurance covers the legal costs, settlements and judgments that arise from employment-related claims.
Cyber Liability
General liability insurance does not cover cyber-related security risks or data breaches including breaches that result in breaks in HIPAA compliance. It’s highly recommended that healthcare facilities purchase cyber liability coverage to protect against financial risks associated with hacking, data loss and data restoration. This type of insurance ensures businesses have a strategic safety net against costly cyber-attacks.
What Are the Benefits of General Liability Insurance?
- Financial Protection Against Legal Costs. General liability insurance offers financial protection if your organization is sued. Whether it's due to injuries to people or their property or personal injury claims, this policy covers legal fees, judgments, settlements and court costs.
- Coverage for Medical Expenses. General liability insurance covers minor medical expenses if a non-employee is injured on your premises regardless of negligence.
- Safeguards Against Property Damage. Accidents happen, and sometimes they result in third-party property damage. General liability policies cover damages caused to someone else's property by your organization’s negligence and prevent out-of-pocket expenses.
- Transfers Risk. General liability insurance helps manage risk by transferring potential financial burdens to the insurance company. This allows you to focus on running your business while the insurer handles the complexities of claims and settlements.
- Provides Peace of Mind. Ultimately, having general liability coverage provides peace of mind. Knowing your business is protected against unexpected situations lets you confidently focus on growth and long-term success.
Protect Your Healthcare Company Against Unseen Risks: Contact LHA Trust Funds Now
Protecting your organization from unforeseen legal and financial challenges is essential, especially if you're in the healthcare industry. General liability coverage from LHA Trust Funds provides a safety net that allows you to concentrate on delivering quality patient care. This coverage transfers risks of unintentional harm by covering legal fees, medical expenses, judgements and settlements to help your organization thrive without interruptions from unforeseen liabilities.
Don’t leave your business vulnerable to costly legal claims. Reach out to LHA Trust Funds to get the right coverage for your healthcare business's needs.
Disclaimer: This material has been prepared for informational purposes only and should not be construed as legal advice or confirmation of coverage. Each claim is evaluated on its own factual merits. Please consult with your coverage provider for information on liability and coverage terms for your organization.