Quick answer: General liability insurance protects your business from third party claims of bodily injury, property damage, personal injury, and advertising injury, and pays the legal costs to defend them. Most small businesses pay between $400 and $1,500 per year, and most leases and client contracts require it before you can sign or start work.
Regardless of what industry your business is in, you are liable for injuries and damage caused from a product or service you offer. Obtaining general liability insurance coverage, or business liability insurance, will provide your business the protection it needs from claims associated with third-party bodily injuries and property damage.
General Liability Insurance Coverage
Acquiring this policy will help protect your business from claims that stem from typical business operations, including claims tied to the products and or services you offer. Common coverage includes:
- Bodily injuries
- Legal defense costs
- Damage to property
- Personal injury
- Advertising injury
Who Should Acquire A Policy?
Every business has their own unique set of risks and liabilities, but typically all businesses should acquire a policy. Examples of businesses that should acquire general liability include:
- Consulting firms
- Construction companies
- Restaurants
- Marketing agencies
- Contractors
Frequently asked questions
What does general liability insurance cover?
General liability insurance covers third party bodily injury, damage to property belonging to others, personal injury such as libel or slander, advertising injury, and the legal costs to defend covered claims. It responds when a customer slips in your store, your crew damages a client's property, or your marketing triggers a defamation claim.
What does general liability insurance not cover?
General liability does not cover damage to your own building, equipment, or inventory (commercial property insurance), employee injuries (workers compensation), claims arising from professional advice (errors and omissions), auto accidents (commercial auto), or data breaches (cyber liability). It protects others from your business, not your business property itself.
How much does general liability insurance cost?
Most small businesses pay between $400 and $1,500 per year for general liability, with many low risk operations such as offices and consultants paying $500 to $800. Premium depends on your industry, revenue, payroll, location, claims history, and the limits you choose. Higher risk trades such as construction pay more.
Is general liability insurance required by law?
No state requires general liability insurance by law the way auto insurance or workers compensation is required. In practice it is mandatory for most businesses anyway: commercial leases, client contracts, vendor agreements, and licensing for many trades all require proof of general liability before you can sign or start work.
What is the difference between general liability and a business owners policy?
General liability is a single coverage for third party injury and property damage claims. A business owners policy (BOP) bundles general liability with commercial property and usually business income coverage into one package for small to midsize businesses, typically at a lower combined premium than buying each separately.
How much general liability coverage do I need?
The most common limits for small businesses are $1 million per occurrence and $2 million aggregate, which is what most leases and contracts require. Businesses with higher exposure, larger contracts, or more public foot traffic often add a commercial umbrella policy on top to extend those limits.
Reach Out To Pro Insurance Group
If you own and or operate a business of any kind, it is important to reach out to the experienced business insurance brokers at Pro Insurance Group to acquire a general liability insurance policy. For more information or to acquire a policy today, give Pro Insurance Group a call at 833.776.4671 or by requesting a quote online.