What Is General Liability Insurance – How To Get General Liability Insurance

General liability insurance is sometimes called business liability insurance or commercial general liability insurance.

This type of liability insurance coverage helps protect your business from claims of bodily injury or property damage that can come up during normal business operations. Without general liability coverage, you’d have to pay for medical expenses and property damages out of pocket.

What Is General Liability Insurance
What Is General Liability Insurance

What Does General Liability Insurance Cover?

General liability insurance policies typically cover you and your company for claims involving bodily injuries and property damage resulting from your products, services or operations. It may also cover you if you are held liable for damages to your landlord’s property.

General liability insurance doesn’t cover employee injuries, auto accidents, punitive damages, workmanship, intentional acts or professional mistakes.

Ways General Liability Insurance Can Help Your Business

Bodily Injury

If a customer injures themselves in your place of business, this policy can help cover their medical bills.
commercial property general liability insurance

Property Damage

Employees sometimes damage customers’ property while delivering products or services. Your GL policy can help pay for the damages.
general liability coverage

Reputational Harm

General liability insurance policies can help cover malicious prosecution, slander, libel, wrongful eviction and violating a person’s privacy.

general liability personal and advertising injury

Advertising Injuries

Claims of copyright infringement are covered with a general liability policy.
damage to rented premises general liability Damage to premises rented to you:

  • If your rented property is damaged by fire, lightning, or an explosion, your general liability policy can help pay for repairs.
  • General liability insurance doesn’t help cover all injuries or damages in every situation.

Who Needs General Liability Insurance?

Four out of 10 small business owners are likely to experience a property or general liability claim in the next 10 years.1 Claims range from unexpected incidents, like a burglary, to unforeseen accidents, such as a customer getting injured after slipping and falling.

How Much Does General Liability Insurance Cost?

Your general liability insurance cost depends on several factors, but can vary from a few hundred dollars to a few thousand dollars a year. One big factor is your type of business. Companies in higher risk industries pay a higher general liability insurance cost compared to lower-risk businesses.

For example, construction companies are likely to see higher insurance quotes and pay a higher rate than consulting companies. Other factors that can affect the cost of liability insurance include your business’:

  • Age
  • Location
  • Number of employees
  • Building condition
  • Policy details, like coverage limits and deductibles
  • Insurance claims history

The best way to find out your commercial general liability insurance cost is to get insurance quotes. You can tailor your policy to fit your specific needs. Get a quote today to find out how liability insurance can protect your business.

Why Is General Liability Needed?

Liability insurance coverage helps protect you from costly general liability claims that can happen during common business situations, such as:

  • You or your employees representing a client
  • Meeting with clients face to face
  • Working on or with another person’s property
  • Using third-party locations for business activities

Advertising Your Business

You may also need this coverage if your clients request it. Many clients want to confirm you have general liability coverage before they sign a contract with your business. You can prove you have general liability insurance with a certificate of liability insurance.

Get increased protection for your business with commercial umbrella insurance to cover you, your employees, and the vehicles you operate, lease, rent, or own.

Is General Liability Business Insurance Required by Law?

State laws don’t usually require business owners to carry general liability insurance. But, it’s still a good idea to have this liability insurance coverage. If a customer sues your business and you don’t have coverage, it can put your business’ finances and your personal assets at risk.

It’s important to understand your state’s insurance laws. Work with a local insurance agency or our dedicated small business insurance team to help you choose the right business liability insurance.

Get Added Protection With Professional and Limited Liability Insurance Coverage
You can extend your business liability coverage with limited liability insurance and professional liability insurance.

Forming a limited liability company (LLC) separates your personal assets from your business. However, you’re still exposed to liability claims that can put your business at financial risk. A limited liability insurance policy can help protect your LLC and cover claims resulting from bodily injury or property damage caused by your business.

A professional liability insurance policy helps protect your business if you’re sued for a mistake in the professional services you’ve provided. This coverage is also known as errors and omissions (E&O) insurance.

Get a General Liability Insurance Quote

Not all insurance companies are the same. It’s important to work with one that you can trust and rely on. We have over 200 years of experience helping small business owners protect their companies with coverages like general liability insurance.

Whether it’s getting a quote, understanding general liability class codes or help filing a claim, we have your back. To learn more, start a free quote get your general liability insurance online from us today.

We can also help you get other essential business coverages, like commercial property insurance and commercial auto insurance.

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