General Liability Insurance Explained: What Every Business Needs to Know
What Is General Liability Insurance?
General liability (GL) insurance protects your business against claims of bodily injury, property damage, and personal/advertising injury caused to third parties — customers, clients, vendors, or members of the public.
It's the most commonly required business insurance. Clients want it in your contract. Landlords want it before you sign a lease. Licensing boards sometimes require it for permits.
What General Liability Covers
Bodily Injury A customer slips on your floor, a passerby is hit by falling material at your construction site, or a visitor is injured at your event. GL pays their medical bills, legal defense costs, and any settlement or judgment — up to your policy limits.
Property Damage You accidentally damage a client's property while working on it. You break a customer's phone at your repair shop. GL covers repair or replacement costs plus your legal defense.
Personal and Advertising Injury This covers non-physical harm: libel, slander, copyright infringement in your advertising, malicious prosecution, and false arrest claims. If a competitor sues you over an ad, GL responds.
Medical Payments Pays minor medical expenses for third parties injured at your premises, regardless of fault — without requiring a liability claim. Typically $5,000–$10,000 limit. Helps settle small claims before they become lawsuits.
What General Liability Does NOT Cover
- Your own injuries or your employees' injuries (that's workers comp)
- •Your own property damage (that's commercial property insurance)
- •Professional mistakes or bad advice (that's professional liability / E&O)
- •Auto accidents in work vehicles (that's commercial auto)
- •Intentional acts or criminal conduct
Understanding Your Limits
GL policies have two key limits:
Per Occurrence Limit: Maximum paid for any single claim. Standard is $1M. Aggregate Limit: Maximum paid across ALL claims in a policy year. Standard is $2M.
Many clients require $1M/$2M minimum. For higher-risk work or larger clients, $2M/$4M is common.
How Much Does GL Cost?
For most small businesses:
- •Retail/office-based: $500–$1,000/year
- •Service contractors: $800–$2,500/year
- •Construction: $2,000–$8,000+/year
Cost factors: your industry's risk level, annual revenue, years in business, prior claims, and location.
Do You Need Additional Insured Endorsements?
Clients often require to be named as "additional insureds" on your GL policy. This extends your coverage to protect them if your work causes them harm. CCA makes adding additional insureds fast — usually same-day.
Getting a GL Quote
CCA can quote GL in minutes. Call 844-967-5247 or use our online quote form. We'll ask about your business type, annual revenue, and any specific coverage requirements, then shop multiple carriers to find the best rate.
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