What does general liability insurance cover for apartment buildings?
General liability covers bodily injury and property damage claims from third parties, such as a tenant or visitor injured in a common area.
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.
Related Coverage
Related Terms
Related Guides
Related Comparisons
Need help with this for your building?
Get a free coverage review — no obligation, no spam.
Related Questions
What types of insurance does an apartment building owner need?
Apartment owners typically need commercial property, general liability, loss of rents, umbrella, and workers compensation coverage at minimum.
How much does apartment building insurance cost?
Apartment building insurance typically costs $500 to $3,000 per unit annually, depending on the property's size, location, age, and coverage needs.
What is a commercial umbrella policy and why do apartment owners need one?
A commercial umbrella policy provides additional liability limits above your general liability, auto, and employer's liability policies, protecting against catastrophic claims.
Does landlord insurance cover tenant injuries?
Yes, the general liability portion of a landlord's insurance covers tenant injury claims if the injury resulted from the owner's negligence or a property hazard.
Do I need workers compensation insurance for my apartment building?
If you have any employees (including maintenance workers, groundskeepers, or on-site managers), most states require workers compensation coverage.