What is General Liability Insurance?

General liability insurance protects businesses from common risks that could lead to costly claims. This type of insurance helps ensure your business remains financially secure even in unexpected situations, such as bodily injuries, property damage, and personal or advertising injury claims. In addition to protecting your assets, it helps maintain your business's reputation, allowing you to focus on growth and customer service without compromising the financial health of your business.

What is Included in a General Liability Insurance Policy?#

General liability insurance protects against a range of unforeseen incidents that could lead to financial loss or reputational damage. As a business owner, unexpected events can arise, such as an accidental slip-and-fall injury on your premises or a mishap by an employee. These incidents can turn into costly legal battles or cover substantial medical expenses. Therefore, having a general liability insurance policy safeguards your financial interests. Let’s shed more light on what each coverage offers.

Bodily Injury Coverage

Covers the medical expenses and legal fees if someone gets hurt in your workspace. It makes sure that you are not vulnerable to such claims.

Property Damage Coverage

Ensures your business isn’t held responsible for repairs or replacements if you cause unintentional damage, protecting your reputation.

Personal and Advertising Injury Coverage

Helps protect your business against defamation, slander, or false advertising claims, as it helps cover legal costs and any resulting damages.

Medical Payments Coverage

Covers the medical costs if someone gets injured on your property. This policy covers small medical expenses without a lawsuit or claim process.

Product Liability Coverage

If a product you sell or produce leads to harm or injury to a customer, product liability coverage helps to keep your business safe against lawsuits.

Completed Operations Coverage

Protects you if a defect in the work you provided causes damage once the job is finished, preventing financial setbacks from post-project claims.

Tenant Damage Coverage

This coverage protects against the cost of repairs or replacement if a tenant causes accidental damage, ensuring the renters' actions don’t impact you.

Legal Defense Costs

Legal defense costs coverage manages the high expenses of defending yourself in court and protecting your business from financial strain during proceedings.

Non-Owned Auto Liability

If your employees use personal vehicles for business operations, non-owned auto liability coverage ensures your business is protected in an accident.

Premises Liability Coverage

This coverage protects your business from legal and medical costs if an individual is injured in your space and is essential for all types of companies.

What is Not Covered Under General Liability Insurance?#

While general liability insurance covers many common risks, it does not cover everything. Business owners must carry separate specialized coverages to protect against the following exclusions:

• Employee Injuries: Requires Workers' Compensation Insurance.
• Professional Errors and Omissions: Requires Professional Liability / E&O InsuranceErrors and Omissions Insurance — covers claims that your professional advice or services caused a client a financial loss, separate from bodily injury or property damage..
• Auto Accidents: Requires Commercial Auto Insurance (or hired/non-owned auto endorsementAn add-on to a base insurance policy that changes its terms — here, extending liability coverage to vehicles the business doesn't own but that employees drive for work.).
• Damage to Your Own Property: Requires Commercial Property Insurance.
• Intentional Acts or Fraud: Deliberate or fraudulent actions are never covered.
• Contractual Liabilities: Liability assumed under certain contracts may be excluded.
• Pollution and Environmental Damage: Damage from toxic spills requires pollution liability riders.
• Damage to Products or Completed Operations: Standard exclusions for damage to your own work/products.
• Cybersecurity Breaches: Data breaches and ransomware require Cyber Liability Insurance.
• Employment-Related Issues: Wrongful termination and harassment claims require EPLIEmployment Practices Liability Insurance — covers claims from employees alleging wrongful termination, discrimination, harassment, or other employment-related wrongdoing..
• Product Defects: Excludes the cost of recalling defective products.
• Damage from War or Terrorism: Standard exclusion across all commercial lines.

General Liability vs. BOP Comparison#

For many small business owners, deciding between a standalone General Liability policy and a bundled Business Owner's Policy (BOP)A bundled package policy that combines general liability and commercial property coverage (and often business interruption coverage) into a single, typically discounted policy for small businesses. is a critical choice. Here is how they compare:

How Much Does General Liability Insurance Cost?#

Small businesses typically pay around $40 to $55 monthly or $480 to $660 annually for general liability insurance coverage. The cost varies depending on factors like limits, geographic location, industry, and the type of coverage included in the policy. Business owners must review their insurance needs to ensure enough coverage.

Who Needs General Liability Insurance?#

Every business, regardless of size or industry, faces risks that could lead to expensive legal claims. General liability insurance is an important safety net, offering protection against common risks like bodily injuries, property damage, and advertising mistakes. If you're running a small business, managing a franchise, or providing professional services, this coverage shields your operations, promising financial stability and peace of mind. Here's a look at who can benefit most from this insurance.

1. Small Business Owners requiring basic liability protection to acquire client contracts.
2. Retail Store Owners handling physical foot traffic and slip-and-fall hazards.
3. Service Providers working at client locations where property damage might occur.
4. Contractors and Subcontractors needing certificates of insurance (COI)A document from your insurer that proves you carry active coverage and lists its limits — commonly required before landlords, clients, or job sites will let you begin work. to get on job sites.
5. Restaurants and Food Service Businesses serving meals and beverages to the public.
6. Franchise Owners standardizing commercial protection across multiple sites.
7. Healthcare Providers managing clinics and administrative spaces.
8. Real Estate Agents and Brokers showing properties to prospective buyers.
9. Manufacturers and Distributors exposed to product liability claims.
10. Tech Companies delivering software services or visiting client offices.
11. Property Owners and Landlords protecting leased commercial premises.
12. Event Organizers managing temporary venues and public assemblies.
13. Freelancers and Consultants protecting their personal assets against client claims.
14. E-commerce Businesses shipping goods that could cause injuries or damages.
15. Non-profit Organizations shielding board members and operations from liability.

How to Get General Liability Insurance in 3 Easy Steps#

Securing general liability insurance for your business is simple and fast. At Insure C-Store, we've digitized the process so you can get covered in minutes. Get started online today.

Frequently Asked General Liability Insurance Questions#

Statistics show that about 40% of small businesses will experience a property or general liability claim in the next 10 years ¹. Slipping and falling on premises remains the leading cause of customer bodily injury claims ², with the average legal defense costs running into tens of thousands of dollars ³.