General liability insurance may cover certain third-party bodily injury and property damage claims arising from business operations, subject to policy terms.
Definition
General liability insurance is coverage that may respond to certain third-party bodily injury, property damage, and related claims connected with a firm's operations. The policy, exclusions, limits, and endorsements define what is covered. A civil engineering firm may encounter this coverage in client contract requirements or when reviewing risks from office, site, or other business activities. It is distinct from professional liability insurance, which addresses claims alleging errors or omissions in professional services. General liability does not automatically cover design errors, every site incident, employee injuries, or all contractual obligations. Owners should compare requested contract terms with the actual policy and any endorsements rather than relying on the coverage name alone. Requirements and coverage details can differ by project and policy. See OSHA for workplace safety information relevant to operational risk.
How owners use it
- Owners compare a client's insurance requirements with the firm's general liability declarations, limits, and endorsements.
- A firm distinguishes a third-party bodily injury allegation from a claim alleging a professional design error when routing a notice for review.
- If a contract requests a $2 million limit and the policy shows a $1 million limit, the difference is $2,000,000 - $1,000,000 = $1,000,000, which the owner can flag for review.
- Owners review policy exclusions and additional insured wording before confirming that a requested status is available.
