A general liability insurance policy pays for property damage or bodily injury to a third party that was caused by you. If you are installing carpet in someone’s home and one of their kids trips over the roll of carpet and breaks their arm, your general liability policy could cover the child’s medical costs. Likewise, if you are plastering a kitchen ceiling and you drop your trowel on the client’s new soapstone countertop, cracking it, your policy could pay to replace the counter top. Without this coverage, you’d be paying these costs out of your pocket.

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