General Liability insurance is a part of the general insurance system of risk  financing to protect the purchaser (the "insured") from the risks of liabilities imposed by lawsuits and similar claims. It protects the insured in the event he or she is sued for claims that come within the coverage of the insurance policy.  Coverage for an insured when negligent acts and/or omissions result in bodily injury and/or property damage on the premises of a Business, when someone is injured as the result of using the product manufactured or distributed by a business, or when someone is injured in the general operation of a business.