Costs of medical bills related to visitors who get injured on your premises or because of your startup. If the visitor sues over their injury, your policy may also cover the associated legal fees if your startup is found liable.

Third-party property damage

Costs of repairing or replacing property of a third party damaged by your product or service.

Digital Accessibility Coverage

Protection from ADA claims associated with your product.

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Hired & Non-owned auto

Coverage for damages while using a vehicle for business.

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Product Liability

Costs associated with harm caused by your product, including property damage or physical injury.

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What it doesn’t cover

Damage to company property: typically covered by Business Personal Property insurance. You can bundle Property and General Liability into a Business Owner’s Policy (“BOP”).
Employee lawsuits: typically covered by Employment Practices Liability, Fiduciary, or Employee Benefits Liability coverage.
Employee injury: typically covered by Workers’ Comp.
Data incident: typically covered by Cyber insurance.
Professional liability: typically covered by Errors & Omissions.
Claims against directors and officers: typically covered by Directors and Officers insurance.

FROM THE ACTUARIES

General Liability Claims Examples

Incident

A startup providing an online restaurant reservation platform holds its annual holiday party at a rented event space, and an employee accidentally knocks a painting off the wall which cracks the frame. The event space demands that the startup reimburse it for $5,000, the cost to repair the painting.

Resolution

The general liability portion of the BOP policy covers the cost to repair the painting. A copy of the invoice to repair the frame is enough to reimburse the event space on the same day.

Incident

A series C startup makes driverless vehicles for delivery services that operate on city streets and highways. On a busy Friday evening, a brake malfunction causes one of their vehicles to rearend multiple cars at traffic stops, causing significant property damage. A class action lawsuit is filed against the startup on behalf of the owners whose vehicles were damaged.

Resolution

The products and completed operations portion of the general liability policy provides coverage for the cost of attorneys’ fees to defend the class action, and a potential settlement or judgment up to the policy limits.

Damage to rented event space

Incident

Resolution

The general liability portion of the BOP policy covers the cost to repair the painting. A copy of the invoice to repair the frame is enough to reimburse the event space on the same day.

Advertisement alluding to competitor triggers lawsuit

Incident

A consumer marketplace startup is acquired by another player and decides to launch a new advertisement campaign to announce this milestone. In the ads, they try to hint at their main competitor by playing with certain words and expressions that this competitor uses in their marketing. They receive a demand letter from the competitor alleging that their slogan was improperly used in the advertisements.

Resolution

The claim triggers the personal & advertising injury portion of the general liability policy, which provides cover for the cost of attorneys’ fees and a potential settlement or judgment up to the policy limits.

Driverless vehicle causes accidents

Incident

Resolution

INSURANCE 101