What is General Liability Insurance?
Also known as business liability insurance, general liability insurance does what it's name suggests. It protects you and your business from "general" claims involving bodily injuries and property damage. General liability insurance is the most common type of insurance for businesses. Almost every business has a need for general liability.
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What does General Liability cover?
Bodily Injury
Bodily Injury coverage typically addresses claims related to injuries someone may experience on your premises or as a result of your business operations. This can include associated medical expenses or related costs when your business is held responsible.
Property Damage
Property Damage coverage generally applies when your business activities cause damage to someone else’s property. This may include repair or replacement costs when the damage is determined to be your responsibility.
Personal Injury (ex: libel or slander)
Personal Injury coverage often extends to certain non‑physical injuries, including claims involving libel, slander, or similar allegations. This helps address situations where a claim is made that your business caused harm through spoken or written statements.
Do You Need General Liability Insurance?
Almost every business needs general liability insurance. Many businesses choose general liability insurance when they:
Use advertising or marketing materials
Need insurance to qualify for contracts or projects
Work with temporary or short‑term employees
Maintain business activity on social media
Operate at third‑party locations or job sites
What Types of Businesses Benefit from Commercial General Liability Insurance?
- Small business owners
- IT contractors
- Artisan contractors
- Janitorial services
- Marketing firms
- Consultants
- Real estate agents
- Landscaping companies
What Does General Liability Not Cover?
Employee injuries or illnesses due to their work. This is where Workers' compensation comes into play. It gives your employees benefits that can help them recover from work-related injuries or illness.
Commercial auto accidents that you or your employees cause while driving for work. A commercial auto insurance policy can help. If you do not own vehicles for your company, you may need hired and non-owned auto coverage.
Claims that cost more than your liability limits. Expensive claims can happen. You'll want commercial umbrella insurance to help protect you from expensive claims. Commercial umbrella insurance can extend the limits on certain liability policies. It acts "as an umbrella" over your policy.
Damage to your own business property. If your actual owned or rented building is damaged your general liability policy will not cover that. You will need commercial property insurance for that.
Errors in professional services. If you offer a professional service like a lawyer or CPA, you will also need professional liability insurance. This will help protect if you were to make mistake in the services you provided.
Not Having General Liability Insurance Could Cost You
If you are in a situation where you are facing legal settlements and lawyer fees without general liability insurance help, it can get very expensive very quickly. Legal counsel typically costs more than $100/hour. Depending on the issue, court costs could exceed $50,000.
Not having general liability insurance could put your business at financial risk.
A certificate of insurance is required to prove that you have insurance coverage.