Does general liability insurance cover property damage? It depends.

General liability insurance may cover property damage, but coverage depends on whose property is involved and what caused the damage. The article explains that general liability is designed to address accidental third-party property damage, meaning it can help pay for repairs or replacement costs when a business unintentionally harms someone else’s physical property. In contrast, it typically does not cover damage to the business’s own property. The coverage can also vary based on circumstances, with intentional damage generally not covered. The article distinguishes real property—such as land, buildings and items attached to land—from personal property, including movable items like cars, electronics, and jewelry. It further notes that property is considered damaged if it loses monetary value or functionality. Examples include damaging a client’s building or flooring and causing harm to a customer’s personal items during business work.