What is General Liability Insurance?
General liability insurance helps protect businesses from certain lawsuits and claims arising from everyday operations. It typically covers third-party bodily injury, property damage, and personal or advertising injury. This coverage is a basic form of business insurance and is often required by landlords, clients, or contractors before work can begin.
Who Needs General Liability Insurance?
Almost any type of business can benefit from general liability insurance. This includes small business owners, independent contractors, and self-employed professionals in industries like retail, construction, consulting, and more. If your business interacts with customers, clients, or vendors, this coverage can help protect you from unexpected legal costs.
What It Typically Covers
General liability insurance usually includes coverage for:
- Third-party bodily injury: If someone is injured on your business premises or by your operations, this can help cover medical expenses and legal costs.
- Third-party property damage: Covers damage to someone else’s property caused by your business activities.
- Personal and advertising injury: Includes claims of libel, slander, copyright infringement, or false advertising.
- Legal defense costs: Helps pay for attorney fees and court costs related to covered claims.
Common Exclusions and Limitations
General liability insurance does not cover everything. Common exclusions include:
- Employee injuries (covered under workers' compensation)
- Professional errors or negligence (covered under professional liability insurance)
- Intentional acts or illegal activity
- Damage to your own business property (requires commercial property insurance)
Coverage limits also apply, so it’s important to assess your business risks and make sure your policy fits your needs.
Factors That Influence Cost
The cost of general liability insurance depends on several factors, including:
- Type of business and industry risks
- Business size and revenue
- Location and number of employees
- Claims history
- Coverage limits and deductibles
Proof of Insurance and Compliance
Many clients, landlords, or vendors may ask for a Certificate of Insurance (COI) to confirm that your business has active general liability coverage. Requirements can vary by state or industry, so it’s important to understand what’s needed to stay compliant and avoid fines or delays.
How to Get a Quote
Getting general liability insurance is simple. Fill out a short application to compare coverage options and choose a plan that fits your business needs. Get a quote today.
Frequently Asked Questions
Is general liability insurance required by law?
It's not always legally required, but many landlords, clients, and vendors require it before doing business with you.
What happens if I don’t have general liability insurance?
You could be personally responsible for legal fees and damages if your business is sued for injury or property damage.
Does general liability insurance cover my employees?
No, employee injuries are typically covered by workers' compensation insurance, not general liability.
Can I bundle general liability with other types of insurance?
Yes, many insurers offer business owner’s policies (BOPs) that combine general liability with property insurance and other coverages.
How quickly can I get proof of coverage?
In many cases, you can receive a Certificate of Insurance the same day your policy is issued.
Still have questions? Talk to a local insurance expert.