General Liability Insurance
The everyday liability coverage most small businesses start with, built around your work and your risks.
General liability insurance is often the base policy for a small business. It may help cover claims that your business caused bodily injury or property damage to someone else, along with certain advertising and reputation claims. What applies depends on the policy wording, so it is worth reviewing the details with someone who knows your trade.
What it is
General liability insurance responds when a third party, meaning someone who is not you or your employee, says your business caused them harm. That might be a client who slips at your shop, a neighbor whose property your work damaged, or an ad that another company says crossed a line. A policy like this often includes the cost to defend the claim as well as amounts you may owe if you are found responsible, up to the limits you choose.
What it may help cover
- Third-party bodily injury claims
- Third-party property damage claims
- Slip and fall incidents at your location
- Legal defense costs for covered claims
- Personal and advertising injury allegations
- Products and completed operations claims
- Medical payments for minor injuries to visitors
What it commonly excludes
Coverage depends on the policy wording. Some things a policy like this commonly does not cover:
- Injuries to your own employees
- Damage to your own property or work product
- Professional mistakes and bad advice
- Auto accidents involving business vehicles
- Intentional or criminal acts
Who should carry it
Almost any business that deals with the public, visits client sites, or rents commercial space can benefit from general liability insurance. Landlords, clients, and event organizers often ask for proof of it before they will work with you, so many owners carry it simply to open doors. If you have a storefront, a crew, or a schedule full of client visits, this is usually the first coverage worth reviewing.
Common gaps we check for
- No protection for professional advice or errors
- Employee injuries needing workers compensation
- Business vehicles needing commercial auto
- Property and equipment needing its own coverage
- Limits set too low for the contracts you sign
A real-world example
A client visiting a Whittier print shop trips over a cord and breaks a wrist. She files a claim for her medical bills and lost wages. A general liability policy may help cover the defense and any amounts owed, depending on the policy wording.
What affects the cost
- Your industry and the risks that come with it
- Annual revenue and payroll
- The coverage limits you select
- Your claims history
- Where your business operates
- Number of locations and employees
Questions clients ask
Is general liability insurance required by law in California?
How fast can I get a certificate of insurance?
Does this cover mistakes in my professional work?
What limits should I carry?
Do you help clients in English and Spanish?
Related coverage
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