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Glossary

General liability

General liability covers third-party bodily injury and property damage claims. If a guest trips on a loose step and breaks an arm, general liability pays the medical bills and defends any lawsuit.

By Andrew Bate, Co-founderReviewed by Stuart BateUpdated

Why this matters for property managers

Liability is the risk that ends businesses: a single serious injury can exceed an owner's assets and a manager's. Cities that regulate short-term rentals almost always regulate this line, requiring $500K–$1M per occurrence. Velaris auto-enrolls every managed home in liability coverage at onboarding, with an opt-out for owners who can show equivalent coverage.

Related terms

Commercial general liability (CGL)
Commercial general liability is the foundation of business liability coverage, protecting against third-party bodily injury, property damage, and personal or advertising injury claims. For property managers it responds when a guest slips on a wet deck or a vendor damages a neighbor's fence.
Per-occurrence limit
The per-occurrence limit is the maximum a policy pays for a single claim or incident. With a $1,000,000 per-occurrence limit, no single claim can exceed $1,000,000 even if the aggregate limit is higher.
Medical payments coverage (MedPay)
Medical payments coverage is a sub-limit within a liability policy that pays small medical bills for injured guests regardless of fault. If a guest cuts a hand on a broken glass, MedPay covers the urgent-care visit without a lawsuit.
Umbrella policy
An umbrella policy adds a layer of liability coverage above underlying policies. If general liability pays its $1,000,000 limit and a lawsuit demands $1,500,000, the umbrella covers the remaining $500,000.
Event liability insurance
Event liability insurance covers third-party bodily injury and property damage arising from an organized gathering — a wedding, retreat, or party — at a vacation rental, at limits selected for the event. It fills the gap left by host policies and platform protection, which typically exclude events.
Occurrence-based policy
An occurrence-based policy covers any incident that happens during the policy period, regardless of when the claim is filed. Damage in January that is claimed in June — even after the policy expires — is still covered.
Liability
Liability is legal responsibility for injury or damage to someone else. If a guest is hurt at a property and the owner or manager is found liable, they are responsible for the guest's medical costs, legal fees, and any settlement or judgment.
Liability Control
Liability Control is Velaris's liability program for managed properties. Every home in a manager's portfolio is enrolled in liability coverage at onboarding, with limits from $100K to $1M per occurrence and an opt-out for owners who show equivalent coverage.
Care, custody or control (CCC)
Care, custody or control is an exclusion in general liability policies: the policy does not pay for damage to property that is in the insured's care, custody or control, such as a home a property manager operates on an owner's behalf or a guest's belongings left in it. Damage to that property has to be covered by a property policy, a damage program or a specific endorsement.

Browse every term in the insurance glossary for property managers.

General liability: common questions

Does the owner's homeowners policy provide liability for guests?

Usually not, because of the business-use exclusion. Owners often believe they are covered until a claim is denied.

What liability limits do Velaris programs offer?

Per-property limits from $100K to $1M per occurrence, with company-level and umbrella coverage available above.

Related guides

General liability for property managers
Read the full Velaris guide.
Insurance for vacation rental property managers
Read the full Velaris guide.
Certificates of insurance
Read the full Velaris guide.

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