Shield your business against common lawsuits.
Businesses can be a magnet for litigation, and a single uncovered lawsuit can devastate a business. Commercial general liability insurance provides coverage for many common types of lawsuits, giving business owners the protection and peace of mind they need to operate successfully.
Understanding Commercial General Liability Insurance
Commercial general liability insurance, sometimes called business liability coverage or business general liability insurance, provides coverage for certain types of third-party liability claims. These are claims brought by individuals who do not own or work for the company, such as customers or competitors.
The bodily injury and property damage coverages apply if a third party is injured or their property is damaged on your business premises. They can also apply as a result of your business activities – for example, if a customer falls in your store or if a passerby trips over equipment that you’ve left out while doing repairs on a house.
Personal and advertising injury coverage provides protection against claims involving copyright infringement, libel, slander, wrongful eviction, false arrest and invasion of privacy.
Frequently Asked Questions
What is general liability insurance and how does it work?
General liability insurance is a type of a liability protection, meaning it provides coverage for third-party claims.
If your company’s property is damaged, you do not have a claim under your general liability insurance. Instead, you would report the claim under your property insurance policy. If a customer’s property is damaged due to your business operations, the resulting claim can be reported under your general liability insurance policy.
In the event of a covered lawsuit, your policy will cover your defense costs as well any judgements or settlements, per the terms of the policy. Small medical payments may be paid without the need for legal action.
Your business’s general liability insurance policy will have a per-occurrence limit and an aggregate limit, which limit the amount the insurer will pay for a single claim and for all claims within a policy period, respectively. Your policy may also have a deductible.
Do I need general liability insurance for my small business?
Most small businesses have general liability risks, so coverage is important. In fact, general liability insurance is considered a cornerstone of insurance protection for small businesses. It is often bundled with commercial property insurance in a business owner’s policy.
Although general liability insurance for small businesses may not be legally required, you may be contractually obligated to carry it. Some state licenses also require coverage, particularly general liability insurance for contractors.
What does general liability insurance typically cover?
General liability insurance typically covers third-party bodily injury, property damage, personal injury and advertising injury claims. It does not cover employee injuries, employment-related claims, pollution-related claims, cyber claims, or claims involving financial loss tied to your professional services. Liquor liability coverage is typically excluded but can be added as an endorsement. Other exclusions may also apply. See your policy for details.
What’s the difference between general liability and professional liability insurance?
Both general liability insurance and professional liability insurance provide protection against lawsuits from third parties, but they cover different types of lawsuits.
General liability insurance primarily provides coverage for bodily injury and property damage claims, although it also provides coverage for advertising and personal injuries, such as copyright infringement, defamation and false arrest. These claims are typically tied to your business premises or operations.
Professional liability insurance provides coverage for claims involving financial loss as a result of professional services, meaning you’re accused of professional negligence, errors or omissions in the course of your services, and your client suffers financial harm as a result.
Let’s say an accountant misses a deadline, and a client suffers a financial loss because of it. This is a professional liability claim. If the same accountant is meeting with a client in the accountant’s office, and the client slips on a torn rug and sues over medical costs, it’s a general liability claim.
How much does general liability insurance cost for a business?
Your general liability insurance costs will depend on various factors, including your risk exposures and your claims history. You can keep your insurance costs down by practicing strong risk management. Other cost control strategies include bundling your coverage and considering a higher deductible.
The best way to see how much you’ll pay for small business liability insurance is to get a general liability insurance quote.