General Liability Insurance
What is General Liability Insurance?
General liability insurance protects your business from financial loss due to claims of bodily injury, property damage, or advertising injury caused by your business operations, products, or services. It's often considered the foundation of a commercial insurance program.
Who Needs General Liability Insurance?
Virtually all businesses need general liability coverage, including:
- Contractors and construction businesses
- Retail stores and restaurants
- Consultants and professional service providers
- Manufacturers and wholesalers
- Landlords and property managers
- Any business that interacts with customers or the public
What Does General Liability Cover?
Bodily Injury
Covers medical expenses, lost wages, and legal fees if someone is injured due to your business operations (e.g., customer slips and falls in your store).
Property Damage
Covers damage to others' property caused by your business operations (e.g., you accidentally damage a client's furniture while working in their home).
Personal and Advertising Injury
Covers claims of libel, slander, copyright infringement, or false arrest arising from your advertising or business practices.
Medical Payments
Pays for minor medical injuries regardless of fault (e.g., small cuts or bruises that don't require a lawsuit).
Legal Defense and Judgments
Covers attorney fees, court costs, and settlements or judgments if you're sued for a covered claim.
Common Exclusions
General liability insurance typically does NOT cover:
- Employee injuries (covered by workers' compensation)
- Professional mistakes or errors (covered by professional liability)
- Damage to your own business property (covered by commercial property)
- Automobile accidents (covered by commercial auto)
- Intentional acts or criminal behavior
- Pollution or environmental damage
- Damage caused by automobiles, aircraft, or watercraft
Frequently Asked Questions
How much general liability coverage do I need?
Coverage needs vary by business size, industry, and risk factors. Common limits are $1 million per occurrence / $2 million aggregate, but many businesses need higher limits based on their contracts and risk exposure.
Is general liability required by law?
General liability is not typically required by state law, but it's often required by clients, landlords, lenders, or professional licensing boards. Many contracts will specify minimum insurance requirements.
What's the difference between general liability and a business owner's policy (BOP)?
A BOP bundles general liability with property insurance and often business interruption coverage, typically for small to medium-sized businesses. General liability can be purchased standalone or as part of a BOP.