What is Property and General Liability?
Property and general liability insurance is a combined policy that helps protect your business from two major risks. Property insurance covers physical assets like buildings, equipment, and inventory from events like fire, theft, and vandalism. General liability insurance helps cover costs if your business is held responsible for bodily injury or property damage caused to others.
Who Needs It
Most small and mid-sized businesses can benefit from property and general liability insurance. It’s especially important for businesses that:
- Operate from a physical location, such as an office, storefront, or warehouse
- Own valuable equipment or inventory
- Have clients or vendors visit their premises
- Perform work at client sites
What It Typically Covers
A property and general liability policy usually includes:
- Property coverage: Protection for buildings, tools, inventory, furniture, and fixtures against covered losses
- General liability: Coverage for claims of bodily injury, property damage, and personal injury (like libel or slander)
- Loss of income: May cover lost income if your business operations are interrupted due to a covered loss
Common Exclusions and Limitations
While this coverage offers broad protection, certain situations are often excluded, such as:
- Intentional damage or illegal acts
- Employee injuries (usually covered by workers’ comp)
- Professional errors (covered by professional liability insurance)
- Flood and earthquake damage (may require separate policies)
Factors That Influence Cost
Insurance premiums vary based on several factors, including:
- Type of business and industry risk
- Location and property value
- Business size and revenue
- Claims history
- Coverage limits and deductibles
Proof of Insurance & Compliance
Many landlords, clients, or licensing agencies may require proof of property and general liability insurance. A certificate of insurance (COI) typically serves as evidence that you have coverage. Requirements can vary by state and industry, so it’s important to understand what’s needed in your area.
How to Get a Quote
Getting coverage is simple. Gather some basic information about your business, such as the type of work you do, where you operate, and your property details. Then, get a quote to compare options and find protection that fits your needs.
Frequently Asked Questions
What’s the difference between general liability and property insurance?
General liability covers third-party injuries and property damage. Property insurance protects your own business assets from covered events like fire or theft.
Is this coverage required by law?
It’s not always legally required, but landlords, clients, or lenders often ask for it. Some industries may also have specific insurance requirements.
Can I customize my coverage?
Yes, many insurers offer flexible coverage options and add-ons to meet your specific business needs.
Does this insurance cover my employees?
No, employee injuries are typically covered under workers' compensation insurance, which is separate from general liability.
How do I show proof of coverage?
You can request a certificate of insurance (COI) from your insurance provider to show clients or partners that you're insured.
Still have questions? Talk to a local insurance expert.