Business Liability Insurance

General liability insurance helps protect your assets by providing a first line of defense against a variety of claims for alleged negligence or wrongdoing. In today's lawsuit-happy society, litigation can wreak havoc with any business - including yours.

By covering the cost of defending or settling these claims, a business general liability insurance policy can help you keep your business in business.

For more information on commercial general liability insurance, how it differs from business liability or a business owners package (BOP) and a list of providers please visit our CGL Insurance page.

What does a typical General Liability Insurance policy cover?

Liability Insurance covers five basic categories of business liability:

Bodily Injury - physical harm to a person at your place of business, or an injury caused by your employee at a client's site.

Completed Operations/Products Liability - losses after your business has completed work for a customer (such as repairing appliances or installing plumbing), or from manufacturing and distributing products.

Personal Injury - damage to the reputation or rights of a person or business due to slander, libel, copyright infringement, invasion or privacy, false arrest, wrongful eviction, etc.

Advertising Injury - losses caused by your advertising (spoken or written); for example, an ad that trashes a competitor.

Independent Contractors Liability Insurance - damage from the acts of an independent contractor hired by your business.

Medical Payments - Pays the medical expenses of a person injured on your premises (a customer, client, visitor, or even a trespasser) up to a stated amount, regardless of fault - as a goodwill gesture to prevent lawsuits.

Damages Covered

Your Business Liability Insurance will pay three types of damages:

Compensatory damages -financial losses of the claimant, plus additional monetary losses resulting from the claim.

General damages - for intangible losses ("pain and suffering.” “mental anguish,” etc.)

Punitive damages - penalties against your business for committing a wrongful act.


Although General Liability insurance provides a wide range of protection for your business, it won't pay liability claims related to these areas (which you can cover with other policies):
  • On-the-job injuries to employees (Workers Compensation Insurance);
  • Operating autos or trucks in your business (Business Auto Policy);
  • Performing, or failing to perform, professional services (Professional Liability/Errors & Omissions);
  • Acts as a corporate director or officer (Directors & Officers Policy);
  • Pollution (Environmental Liability Insurance);
  • Damage to property of others in the care, custody and control of your business - for example, an electronic repair shop storing customers' televisions (Bailee's Customer Floater); and
  • Products, such as food items or toys, subject to recall.
  • General Liability Insurance also excludes coverage for losses related to war, terrorism, or nuclear events.
The Bottom Line

A well-crafted General Liability policy can help give you financial peace of mind, freeing you up to grow your business. Go ahead and get a free quote now!
get a free no-obligation Quote now!


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