General Liability Insurance

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Types Of Small Business Insurance

  • Includes medical payments, legal representation, and defense against libel and slander accusations.
  • Bundles general liability insurance and commercial property into one affordable policy.
  • Provides financial protection if an employee has a job-related accident or illness.
  • Pays to repair or replace your business property if it's stolen, damaged, or destroyed in a fire or natural disaster.
  • Covers mistakes or alleged mistakes on your part (errors) & failures or alleged failures to perform a service (omissions).
  • Is liability and physical damage protection for vehicles, such as cars, trucks and vans, that are used for business.
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Frequently Asked Questions About Small Business Insurance

How much does general liability insurance cost?

In 2024, commercial general liability costs can vary widely based on industry. Businesses in higher risk industries pay more. Premiums are also determined by zip code and often payroll and/or gross sales. You can request a free quote to get an exact premium for your business. Read more...

What types of business insurance do I need?

Almost every business needs general liability and commercial property insurance at the very least. If you have any non-owner employees, you'll most likely need workers compensation insurance too as most state require it. It all depends on the risks your business faces. Read more...

How does general liability insurance work?

Having general liability is the basis of any business insurance program. If you can afford only one commercial insurance policy for your small business - then you should get a commercial general liability policy, because it offers protection against a wide range of common but unexpected risks. Read more...

What is a Certificate of Insurance?

A Certificate of Insurance (COI) is proof of coverage. It verifies that you have insurance coverage for your small business, & contains information on types and limits of coverage, insurance company, policy number, named insured, and the effective date of the policy. Read more...
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Commercial General Liability Insurance

General Liability Insurance Quote

General Liability Insurance. At our goal is to get you the commercial general liability and business insurance you need as fast and easy as possible.

We specialize in quick general liability insurance quotes, and have many options placing your small business insurance coverage. We have a fast commercial general liability insurance quote process, making binding coverage simple.

General liability insurance protects your business from bodily injury and property damage lawsuits with rates starting at $27/mo. Get a fast commercial general liability insurance quote and your certificate of insurance today.

General Liability Insurance. You don't have any control over the ultimate cost of injuries to a person injured because of your operations, products, or services. The person injured may be a young child, a blue-collar worker, a surgeon, or a homeless person. The cost of the injuries may be comparatively minor or run into the millions of dollars, depending on the person and the extent of his or her injuries.

Do you have enough money or property you can sell to pay for such a loss? And, if you do, should you use it that way? Commercial general liability insurance (CGL) is designed to help you protect your business, assets and future income.

Your business can opt to purchase a general liability insurance policy on its own or as part of a business owner's policy (BOP) or commercial package policy (CPP), which are insurance policies that bundle both property and liability under a single umbrella.

However, if your business has a package or business owner's policy, it's still a good idea to review the coverage for liability that your policy affords, and if necessary, add an excess liability policy as a separate insurance product to make sure protection is in place.

Below are come commonly asked questions about commercial general liability insurance:

How Much Does General Liability Insurance Cost?

The cost of general liability insurance can vary widely depending on a number of factors, including the size and type of business, the industry in which the business operates, and the level of coverage desired.

Generally, small businesses can expect to pay between $300 and $1,000 per year for a standard general liability insurance policy, while larger businesses or those in higher-risk industries may pay significantly more.

Some businesses may also choose to purchase additional coverage, such as umbrella insurance, which can further increase the cost of their insurance.

It's important to note that the best way to get a accurate quote for your business is to contact an insurance agent or broker and provide them with information about your business, including the type of products or services you offer, your revenue, and the number of employees. They will then be able to provide you with a quote tailored to your specific needs.

Please see, "How Much Does General Liability Insurance Cost?" for a deeper dive into how much a general liability policy costs.

How Does Business Liability Insurance Work?

Liability Insurance Search

Business liability insurance is an essential coverage for any company, regardless of its size or industry. It helps protect a business from financial losses resulting from claims of negligence or other legal issues.

It's important to understand that business liability insurance is designed to protect a company from third-party claims. This means that if a customer, vendor, or other third party suffers a loss or injury as a result of the company's actions, the insurance will cover the costs of defending against the claim and any potential damages awarded. This can include things like medical expenses, lost wages, and even legal fees.

When a claim is made against a business, the insurance company will investigate the incident to determine if it is covered under the policy. If the claim is covered, the insurance company will pay for the costs of defending against the claim and any damages awarded. If the claim is not covered, the business will be responsible for paying for these costs out of pocket.

Commercial General Liability (CGL) insurance, protects your business against the economic loss and expense associated with claims filed against your business for bodily injury, property damage, injury to reputation caused by slander and libel, and also the harm caused by false or misleading advertising.

Bodily injury claims include claims for damage that results when someone falls while visiting your business. It can, depending on the language of the policy, also include coverage for claims of damage that occurs as a result of your business operations.

How Does General Liability Insurance Protect You?

Injured Customer After Fall

General liability insurance is a type of insurance that protects businesses and individuals from financial losses caused by third-party claims of bodily injury or property damage. This type of insurance can help cover the cost of legal defense and any damages or settlements that may be awarded in a lawsuit.

Some common situations where general liability insurance can provide protection include:

  • A customer slips and falls on a wet floor in your store, resulting in an injury. The customer sues you for medical expenses and lost wages.
  • A subcontractor working on a job site damages a neighboring property. The property owner sues you for the cost of repairs.
  • A product you manufacture is found to be defective, causing injury or damage to a customer. The customer sues you for damages.

Having general liability insurance in place can help you to pay for legal fees, court costs and any settlements or judgments that may be awarded against you. It can also help protect your assets and your future income by covering the costs of a lawsuit.

It's important to note that general liability insurance does not cover damages or losses that you are directly responsible for, such as those resulting from your own negligence or wrongful acts. Additionally, general liability insurance typically does not cover professional malpractice or product liability claims.

How Much General Liability Insurance Do You Need?

Are You Covered?

The amount of coverage you need will depend on several factors, including the type of business you operate, the number of employees you have, and the risks associated with your industry.

The first step in determining how much general liability insurance you need is to assess the potential risks associated with your business. For example, if you operate a construction company, you will likely need more coverage than a small retail shop because construction projects come with a higher risk of accidents and injuries. Similarly, if you have a high number of employees, you will need more coverage to protect against claims related to workplace injuries or discrimination.

Next, consider the potential costs associated with a liability claim. These costs can include legal fees, settlements, and judgments. The amount of coverage you need should be sufficient to cover these costs in the event of a claim. A good rule of thumb is to have coverage that is at least equal to the value of your company’s assets.

Ultimately, the amount of general liability insurance you need will depend on the unique risks and exposures of your business.

General Liability Policy Limits

Like a traditional insurance plan, a general liability policy pays for covered claims up to a specified limit. The most common general liability policy is a $1,000,000 / $2,000,000 policy. This means:

  • $1,000,000 per occurrence limit. This means the insurer will pay up to one million dollars to cover any one claim.
  • $2,000,000 aggregate limit. During the effective dates of a policy (typically a year), the insurer will pay up to two million dollars to cover any number of claims.
General Liability Coverage Example

For instance, if your business is sued for injury due to a hazard on the worksite (people are hurt on your jobsite), a policy may cover the medical costs to the injured party along with a set amount for your legal fees. If your business has a liability policy with a $1,000,000 per claim limit, and you're sued for $700,000 with attorney fees amounting to around $100,000, then your policy is sufficient to cover your loss:

  • $1,000,000 limit - $800,000 (claim and legal fees) = $200,000 so more than enough to cover the costs under the per claim amount.

However, in the same scenario, if you're sued for $950,000, and you have attorney fees of $100,000, then you may need to come up with an additional $50,000 to cover the loss:

  • $1,000,000 limit - $1,050,000 (claim and legal fees) = -$50,000. This claim exceeds the per claim limit, so the business owner would owe fifty thousand dollars out-of-pocket.

This is why it makes sense to purchase more liability insurance than you think you need; better to be safe than sorry when you're putting your personal assets and your business at risk. Excess insurance is always preferable to inadequate insurance.

What Doesn't General Liability Insurance Cover?

Every general liability insurance coverage form or policy has certain exclusions and limitations. This is because only specific types of businesses need the coverage or the risk or exposure to loss is not considered insurable for some reason. Some bodily injury and property damage liability exclusions are:

  • Aircraft, Auto, or Watercraft
  • Distribution of Material in Violation of Statutes
  • Expected or Intended Injury
  • Liquor Liability
  • Mobile Equipment
  • Pollution
  • Recall of Products, Work, or Impaired Property
  • War
  • Workers Compensation

What Loss Exposures Does General Liability Insurance Protect Against?

General liability insurance, also known as commercial general liability insurance, is a type of insurance that provides protection for businesses against a variety of potential losses. These losses, or exposures, can include both financial and non-financial losses, and can be caused by a variety of factors, such as accidents, errors, and omissions.

One of the most common loss exposures that general liability insurance protects against is property damage. This can include damage to a third-party's property that is caused by a business's operations or products. For example, if a contractor accidentally damages a customer's property while working on a renovation, general liability insurance would cover the cost of repairs.

Another common loss exposure that general liability insurance protects against is bodily injury. This can include injuries that are sustained by a third-party as a result of a business's operations or products. For example, if a customer slips and falls in a store, general liability insurance would cover the cost of medical expenses and any other related costs.

In addition to property damage and bodily injury, general liability insurance also protects against a variety of other loss exposures. These can include:

  • Advertising injury: This type of loss exposure can include claims of defamation, libel, and slander that are made against a business as a result of its advertising or marketing activities.
  • Product liability: This type of loss exposure can include claims that are made against a business as a result of a defect in one of its products.
  • Personal and advertising injury: This type of loss exposure can include claims of invasion of privacy, wrongful eviction, and wrongful entry that are made against a business.
  • Medical payments: This type of loss exposure can include medical expenses that are incurred as a result of an accident that occurs on a business's property.

Overall, general liability insurance coverage provides protection for businesses against a wide range of potential losses. By understanding the types of loss exposures that are covered by this insurance, businesses can take steps to mitigate their risk and ensure that they are protected in the event of an incident.

Do You Need Other Types Of Business Insurance?

While a general liability policy provides important coverages, it does not cover all types of risks associated with operating a business.

For example, it does not cover:

  • Injuries to workers that occur in the workplace.
  • Losses incurred as a result of errors by professional advisors, such as a lawyer or an accountant, or a board member.
  • Property damage or bodily injury caused by an automobile, even if it was being operated for business purposes.

Other types of commercial insurance policies are available for purchase to cover other types of risks that small businesses may face. Some of the most common ones are listed below:

Business Insurance Policy Type What Is Covered?
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice or E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).

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