How does general liability insurance protect businesses, and what’s an example use case?

General liability insurance protects businesses against liability claims and lawsuits. Most of these claims and lawsuits stem from personal injuries. If a business has general liability insurance and a claim or lawsuit is brought against that business, the insurance company must defend and may have to repay the business. For example, say someone falls at a store because the floor was wet from a leaking container. The injured person then sues the business. The insurance company must then hire an insurance defense attorney (on their dime) to defend the business and possibly pay money to settle.