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General Liability Insurance Guide
General liability (GL) is the foundational coverage for most businesses, protecting against third-party claims of bodily injury, property damage, and personal/advertising injury arising from your operations.
Why Nearly Every Business Needs GL
Even businesses that feel low-risk can face liability claims — a customer slipping at your location, property damage caused during a service call, or advertising claims disputes — GL provides a baseline of protection.
General Liability Costs
| Business Size | Typical Annual Cost |
|---|---|
| Small business | $400-$1,200 |
| Mid-size business | $1,200-$5,000 |
What Affects Your Premium
Industry risk level, revenue, number of employees, claims history, and coverage limits all factor into your specific premium — high-risk industries like construction pay more than low-risk professional services.
What GL Covers (and Doesn't)
GL covers third-party bodily injury and property damage claims, but does NOT cover your own employees' injuries (that's workers comp), professional errors (that's E&O), or your own business property (that's commercial property or a BOP).
How to Save on GL Coverage
Bundle with property coverage in a BOP for a discount, maintain a clean claims history, and compare quotes from multiple providers, since rates can vary meaningfully for identical coverage.
Choosing Coverage Limits
Common limits are $1 million per occurrence / $2 million aggregate, though your specific business risk and any client/lease requirements may necessitate higher limits.
Common Mistakes
Assuming GL covers everything, when in fact professional errors, employee injuries, and your own property damage typically require separate coverage types.
Frequently Asked Questions
Often yes — if you ever meet clients, ship products, or provide services that could result in property damage or injury claims, GL provides important protection regardless of your work location.
$1 million per occurrence / $2 million aggregate is a common standard, though check if any clients or landlords require specific higher limits before finalizing your policy.