What type of insurance covers legal fees and damages if your business is sued for a customer's injury on your premises?

The insurance that generally covers a business’s legal defense and covered damages after a customer is injured on its premises is general liability insurance.

In the United States, the more formal name is commercial general liability insurance, or CGL. It commonly addresses third-party bodily injury and property-damage claims arising from business premises or operations. A policy may pay for the insurer’s duty to defend a covered lawsuit and indemnify the business for covered settlements or judgments, subject to limits, deductibles, conditions, and exclusions.

This coverage is broader than workers’ compensation, which concerns employees injured in the course of employment. It is also distinct from professional liability insurance, which generally addresses claims that specialized advice or services caused financial harm. Product liability can apply when a product injures someone; CGL policies may include product-liability coverage, though separate arrangements and policy wording matter.

General liability policies commonly exclude or restrict areas such as professional services, automobile liability, pollution, liquor liability, and directors-and-officers liability. “General” therefore does not mean every possible lawsuit is covered. The exact answer depends on the policy language and the facts of the claim.