General Liability Insurance
The policy your landlord, your venue, or your general contractor almost certainly means when they ask you to “send over your insurance.” It is generally intended to respond when your business injures someone else or damages property that is not yours.
This page is general information, not insurance advice, and it does not change any policy. Coverage varies by carrier, policy form, and state. See our disclaimer.
What general liability is generally intended to cover
Bodily injury to someone else
A customer trips over a cord you ran across a walkway, or a passer-by is hurt at your job site. The policy is generally intended to respond to their medical costs and to defend you if they sue.
Damage to property you do not own
You knock over a display in a client’s shop, or crack a tile floor moving equipment. Damage to a customer’s property is generally what this part of the policy addresses.
Personal and advertising injury
Claims of libel, slander, or copying someone else’s advertising idea. These are reputational rather than physical, and they are usually included in the same policy.
The cost of defending the claim
Legal defense is generally paid by the insurer even when the claim turns out to be groundless, which for many small businesses is the part that matters most.
What it does not cover
This is where most misunderstandings start. General liability is deliberately narrow, and each gap below has its own policy.
Your employees getting hurt
That is workers’ compensation, a separate policy required in most states once you have your first employee.
Get a workers’ comp quote→Mistakes in your professional work
A missed deadline, a bad recommendation, or a filing error is professional liability, also called errors and omissions.
General liability vs professional liability→Your own tools, stock and building
Damage to things you own is property coverage. A business owner’s policy bundles it with general liability, often for less than buying both separately.
How a BOP compares→Accidents in a vehicle used for work
A personal auto policy generally excludes the vehicle once it is used for business, which is what commercial auto is for.
Commercial auto insurance→A data breach or ransomware event
Most general liability forms exclude or sharply limit cyber exposure, so a dedicated cyber policy handles it.
Cyber liability insurance→Who is going to ask you for it
Most people buy general liability because somebody demanded proof of it, usually as a certificate of insurance.
- A commercial landlord before handing over a lease
- A venue before letting you work or perform on site
- A general contractor before adding you to a job
- A city or state licensing board as a condition of the licence
- A corporate client before signing a services agreement
- A marketplace or platform before letting you take bookings
If someone has asked you to name them on the policy, read what an additional insured is and what a certificate of insurance actually proves.
Somebody asked you for a certificate?
Tell us what your business does and we will point you at the right market for it.
Get a quoteWhat drives the price
Two businesses on the same street can pay very different amounts. These are the things carriers weigh.
What your business actually does
A roofer working at height and a bookkeeper working at a desk are rated very differently, because the chance of hurting someone differs enormously.
Your revenue and payroll
Most general liability policies are rated on sales or payroll, on the reasoning that a busier business has more chances for something to go wrong.
Where you work
State law, local court history, and whether you work at client sites rather than your own all affect the rate.
Your claim history
Prior claims, and how recent they are, carry real weight.
The limits you choose
One million per occurrence and two million aggregate is the combination most contracts and venues ask for, though some require more.
Subcontractors
If you hire subs, carriers will want to know whether you require them to carry their own coverage and name you as an additional insured.
Frequently asked questions
What is general liability insurance?
General liability insurance is generally intended to respond to third-party claims against your business for bodily injury, damage to property you do not own, and personal or advertising injury such as libel or slander. It also generally covers the cost of defending those claims. Coverage terms vary by carrier and policy form.
Is general liability insurance required by law?
It is rarely required by state law the way auto insurance or workers’ compensation is. In practice it is required by contract far more often than by statute: landlords, venues, general contractors, licensing boards, and corporate clients commonly require it before they will do business with you.
What limits do I need?
One million dollars per occurrence and two million dollars aggregate is the combination most contracts request. Some general contractors and municipalities require higher limits, sometimes with an umbrella policy on top. Check the contract itself, since the requirement is written into it.
Does general liability cover my employees if they are injured?
No. Employee injuries fall under workers’ compensation, which is a separate policy and is required in most states once you have employees. General liability responds to injuries to people who are not your employees.
Does it cover mistakes in my work?
Generally not. General liability responds to physical injury and property damage. Claims that your professional work or advice was inadequate fall under professional liability, also called errors and omissions coverage.
What is an additional insured?
An additional insured is another party added to your policy, commonly a landlord, venue, or general contractor who wants the protection of your coverage for claims arising from your work. It is usually added by endorsement, and the requesting party normally specifies the exact wording they need.
How much does general liability insurance cost?
It depends on the trade, revenue or payroll, location, claim history, and the limits chosen, so there is no single figure that applies across businesses. The fastest way to find out for your own situation is to request a quote.
Get a general liability quote
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