Importance of
General Liability Insurance

To become a member of the HBA of Greater Springfield businesses must have a B or Better grade with the BBB (Better Business Bureau), General Liability Insurance & Workers' Compensation Insurance*

Defined by one of our HBA Insurance Members (Connell Insurance):

General Liability insurance is a form of Casualty Insurance that protects a business from most liability exposures they will encounter in the course of their operations.

  • General Liability Insurance is separate and distinct from other liability coverages such as: Automobile Liability, Professional Liability, Employment Practices Liability, and Employers’ Liability (Worker’s Compensation).

General Liability - or “GL” as it is most often referred to - provides coverage for litigation expenses (attorney’s fees, courts costs, investigation expenses, etc.) and the cost to settle a claim arising out of a third-party claimant’s suit for damages due to “Bodily Injury” or “Property Damage”.

  • Ex. of a “Property Damage” claim against a contractor could be an improperly installed pressurized water line that leaks and causes damage to the home. The General Liability policy would pay to replace damaged items that the leaking water came into contact with (Sheetrock, trim, discolored grout, etc.)
  • An example of a “Bodily Injury” claim against a contractor could be a situation where a remodeling contractor improperly wires new appliances by not grounding them. The homeowner or another third-party then uses the appliance and completes the circuit, electrocuting themselves.

*Workers' Compensation is necessary for membership If said business is required to have Workers' Compensation by the state of Missouri.