General liability insurance is a foundational coverage for any business—large or small. Whether you operate a brick-and-mortar store, offer services out of your home, or run a mobile business, general liability insurance helps protect your company from costly claims that could otherwise derail your operations or finances.
This type of insurance is often referred to as “business liability” or “commercial general liability” (CGL) insurance. It’s designed to cover third-party claims for bodily injury, property damage, and certain legal expenses that arise from your business operations.
General liability policies typically include three major areas of protection:
If someone is injured on your premises or due to your business activities, general liability insurance can help cover medical expenses, legal fees, and any court-awarded damages. For example, if a customer slips on a wet floor in your store and breaks an ankle, this coverage would apply.
If your business accidentally damages someone else’s property—either while on your premises or at a client’s location—your policy can help pay for repairs or replacement. For instance, if a contractor knocks over a valuable sculpture while working in a client’s home, general liability insurance would help cover the cost.
This includes non-physical harm such as libel, slander, false advertising, or copyright infringement. For example, if your marketing campaign accidentally uses a copyrighted image without permission, your general liability coverage can help with legal defense and settlement costs.
General liability insurance does not cover:
That’s why it’s often recommended to bundle general liability with other policies—like a Business Owners Policy (BOP)—to get more comprehensive protection.
Almost any business can benefit from general liability coverage. It’s especially important for businesses that:
Examples include:
Even home-based businesses can be sued for accidents or damages, and homeowner’s insurance usually won’t cover business-related claims.
The cost of general liability insurance varies based on several factors, including:
For most small businesses, general liability premiums typically range from $300 to $1,000 per year. Higher-risk industries like construction may pay more.
In today’s litigious environment, even small incidents can result in costly lawsuits. Without insurance, a single accident or legal claim could financially devastate a small business. General liability insurance acts as a safety net—protecting your assets, your reputation, and your ability to keep operating.
Many landlords, clients, and vendors now require proof of general liability insurance before signing contracts or leasing space. Having this coverage not only protects your business, but also builds trust with those you work with.
General liability insurance is one of the smartest investments a business owner can make. It’s affordable, versatile, and crucial to protecting your business from unexpected accidents and legal claims.
If you're unsure what kind or how much coverage you need, a licensed insurance agent can help you assess your risk and recommend the right policy for your specific business type. It's a small price to pay for the peace of mind that comes from knowing your business is protected.
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