What Does a General Liability Insurance Policy Cover?
If you own a business in Washington—whether you’re a contractor, retailer, consultant, or service provider—you need General Liability Insurance. It’s not just a “nice to have” policy; it’s the foundation of your commercial insurance plan. At Hood Insurance Agency, based in Lynnwood, WA, we work with business owners across the state to make sure they’re protected against the risks that come with simply being in business. Here’s what a Commercial General Liability (CGL) policy covers—and why it matters.
What General Liability Insurance Covers
1. Bodily Injury
What it covers: If someone is physically injured on your property or because of your operations, general liability helps cover their medical expenses, legal fees, and any settlements or judgments.
Example: A customer slips on a wet floor at your shop in Everett or your landscaping crew accidentally injures someone in a client’s yard in Seattle.
2. Property Damage
What it covers: If your business activities damage someone else’s property, general liability covers the cost to repair or replace it.
Example: You’re a contractor in Lynnwood and accidentally cause water damage to a client’s home while doing plumbing work. Or you’re a tech installer and drop a client’s expensive monitor during setup.
3. Legal Defense Costs
What it covers: Even if you didn’t do anything wrong, you can still get sued. A general liability policy covers your legal defense and court costs—even if the claim is groundless.
Why this matters in WA: Washington is a highly litigious state when it comes to personal injury and property claims. The cost of just defending yourself can bankrupt a small business.
4. Personal and Advertising Injury
What it covers: This includes non-physical harm like libel, slander, false advertising, copyright infringement, or invasion of privacy.
Example: Your competitor sues, claiming your ad campaign unfairly damages their reputation. Or you accidentally use a copyrighted image on your website.
5. Products and Completed Operations
What it covers: If your product or completed work causes harm or damage after the fact, this coverage helps pay for legal claims and losses.
Example: A cabinet you installed in a client’s home falls off the wall two weeks later and injures someone. You’re on the hook—unless you have the right coverage.
What General Liability Doesn’t Cover
Let’s be clear—general liability doesn’t cover everything. It won’t help you with:
- Employee injuries (that’s what Workers’ Comp is for)
- Damage to your own property
- Professional errors (you’ll need E&O or professional liability for that)
- Auto accidents (covered by commercial auto insurance)
This is why a general liability policy should be part of a broader business insurance strategy—not your only line of defense.
Washington Businesses Need the Right Protection
Whether you’re a small business in Lynnwood, a contractor in Tacoma, or a startup in Bellevue, Washington state’s legal and regulatory environment means you need to be ready for injury claims, property damage lawsuits, or disputes over advertising. Even if you’re just renting an office or doing gig work, most landlords and clients require proof of general liability coverage before doing business with you.
Based in Lynnwood, WA – Serving All of Washington
At Hood Insurance Agency, we’ve been helping Washington businesses protect themselves for over a decade. From one-person shops to growing companies, we’ll help you find the right general liability policy that actually fits your operations—not just some cookie-cutter option.
How Hood Insurance Agency Can Help With Your Liability Insurance Policy
Let’s talk. Call Hood Insurance Agency in Lynnwood, WA at 425-689-5855 or request a quote online. We’ll walk you through the options and make sure you get the right coverage at the right price—no guesswork, no fluff.