What does general liability insurance cover for apartment buildings?

General liability insurance for apartment buildings covers claims for bodily injury and property damage that occur on the premises or result from the owner's operations. Common examples include a visitor who slips on an icy walkway, a tenant who trips over a broken step, a child who is injured on a defective playground, or water damage to a tenant's belongings caused by a maintenance failure.

The policy covers three main categories of expense: legal defense costs (attorney fees, court costs, expert witnesses), settlements negotiated before trial, and judgments awarded by a court. Coverage applies regardless of whether the claim has merit, meaning the insurer pays to defend the apartment owner even if the claim is ultimately found to be groundless. The standard ISO Commercial General Liability (CGL) policy form (CG 00 01) governs the structure of most apartment liability policies and defines the scope of covered "occurrences."

General liability also includes medical payments coverage, which pays small medical bills for people injured on the property without requiring them to file a lawsuit. This can resolve minor incidents quickly and reduce the likelihood of litigation. Personal and advertising injury coverage is also included, which covers claims such as wrongful eviction or invasion of privacy.