general liability insurance
General liability insurance
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| general liability insurance |
Also known as business liability insurance, general liability insurance protects you and your business from “general” claims involving bodily injuries and property damage. Almost every business has a need for general liability insurance.
What Is General Liability Insurance?
General liability insurance (GLI) is sometimes called business liability insurance or commercial general liability insurance. This type of liability insurance coverage helps protect your business from claims that it caused bodily injuries or property damage to others. Without general liability coverage, you’d have to pay for these claims out of pocket.
General liability insurance definition
General liability insurance can help cover medical expenses and attorney fees resulting from bodily injuries and property damage for which your company may be legally responsible.
General liability insurance doesn’t help cover all injuries or damages in every situation. For example, medical treatment costs for injured workers are not covered by this policy. General liability insurance also doesn’t cover lost wages for injured workers. Instead, you’d need workers’ compensation insurance.
general liability insurance coverage
Who Needs General Liability Insurance?
Did you know that four out of 10 small business owners are likely to experience a property or general liability claim in the next 10 years?1 Claims range from unexpected incidents, like a burglary, to unforeseen accidents, such as a customer getting injured after slipping and falling.
Read More About Common Small Business Insurance Claims
How Much Does General Liability Insurance Cost?
On average, our customers paid about $88 a month for general liability insurance.2 We strive to give our customers the best coverage at the best price possible. We know the needs of our small business owners at The Hartford. General liability quotes vary, but we can get you a quote today so you’ll know how much it will cost you. Just remember that general liability insurance costs are different for every one, because every business is unique. Insurance companies use different factors to determine costs.
For example, costs vary by state because one factor an insurer can use is location. Other factors insurers may look at include:
Type of business
- Revenue
- Number of employees
- Policy details, like coverage limits and deductibles
- The best way to find out your general liability insurance cost is to get a quote.
What does general liability insurance cover?
General liability insurance policies typically cover you and your company for claims involving bodily injuries and property damage resulting from your products, services or operations. It may also cover you if you are held liable for damages to your landlord’s property.
Why Is General Liability Needed?
Liability insurance coverage helps protect you from costly general liability claims that can happen during normal business situations, such as:
- You or your employees representing a client
- Meeting with clients face to face
- Working on or with another person’s property
- Using third-party locations for business activities
- Advertising your business
You may also need this coverage if your clients request it. Many clients want to confirm you have general liability coverage before they sign a contract with your business. You can prove you have general liability insurance with a certificate of liability insurance. Get increased protection for your business with commercial auto insurance to cover you, your employees and the vehicles you operate, lease, rent or own.
Is General Liability Business Insurance Required by Law?
State laws don’t usually require business owners to carry general liability insurance. But it’s still a good idea to have this liability insurance coverage. If a customer sues your business and you don’t have coverage, it can put your business’ finances and your personal assets at risk.
It's important to understand your state’s insurance laws. Work with a local insurance agency or our dedicated small business insurance team to help you choose the right business liability insurance.
Get Added Protection With Professional and Limited Liability Insurance Coverage
You can extend your business’ liability coverage with limited liability insurance and professional liability insurance.
Forming a limited liability company (LLC) separates your personal assets from your business. However, you’re still exposed to liability claims that can put your business at financial risk. A limited liability insurance policy can help protect your LLC and cover claims that it caused bodily injury or property damage to others.
A professional liability insurance policy helps protect your business from claims that it made a mistake or error in the professional services given. This coverage is also known as errors and omissions insurance or E&O insurance.
General Liability Coverage for High-Hazard Businesses
What Are Complex Liability Solutions?
Our complex liability solutions help protect businesses that are vulnerable to higher-hazard liabilities, such as:
Manufacturers
Wholesalers
Distributors
Importers
As a top multinational carrier, we handle catastrophic exposures every day. We’ll work with you to lessen the impact of general liability claims on your business.
General liability insurance doesn’t cover employee injuries, auto accidents, punitive damages (in most states), workmanship, intentional acts or professional mistakes.
What Does Liability Insurance Cover?
What does liability insurance coverMany small business owners have a general liability insurance policy to help protect their companies. You may be asking yourself, “What does general liability cover?” This insurance helps protect your business from claims that it caused:
Bodily injury
Property damage
Personal injury, like libel or slander
What Types of Incidents Are Covered Under General Liability?
A general liability policy helps protect your small business from claims that it caused bodily injuries and property damage. These risks can come up during normal business operations. They can get expensive for small businesses and many don’t have the resources to cover a liability claim.
Did you know the average cost of a slip and fall claim is $20,000?1 And if you’re faced with a reputational harm lawsuit, be prepared that they can cost about $50,000.2 Without general liability insurance coverage, your business would have to pay these costs out of pocket.
What Does a General Liability Policy Cover?
What does general liability coverA general liability policy helps cover claims that can come up during normal business operations, such as:
Bodily injuries that your business may have caused. This can include customer slip and falls. General liability coverage can help pay for their medical expenses.
Property damage from employee accidents, like breaking a client’s windows while working at their home. This insurance can help cover the repair or replacement costs to fix the windows.
Personal injury, like libel or slander. General liability can help pay for your business’ defense costs if it gets sued.
What Does General Liability Insurance Cover for a Small Business?
What does general liability insurance coverWhat is general liability insurance and what does it cover? General liability insurance, also known as commercial general liability insurance or business liability insurance, helps cover:
Costs for property damage claims against your business
Medical expenses if someone gets injured at your company
Administrative costs to handle covered claims
Court costs, judgments and settlements for covered claims
Your general liability insurance can help pay for claims up to your coverage limits.
What Does General Liability Insurance Not Cover?
Be aware that general liability insurance doesn’t cover every kind of claim. For some, you’ll need different types of coverage to give your business more protection.
A general liability insurance policy won’t help your business with:
Commercial auto accidents that you or your employees cause while driving for work. A commercial auto insurance policy can help you cover the cost of damages. If your small business doesn’t have company-owned vehicles, hired and non-owned auto coverage could help, too. Be aware that many states require certain types and amounts of auto coverage, like bodily injury liability coverage or property damage liability coverage.
Employee injuries or illnesses due to their work. Workers’ compensation insurance gives your employees benefits to help them recover from a work-related injury or illness. For example, it can help cover an employee’s medical bills and ongoing care expenses.
Depending on your state, general liability insurance can be acquired from a:
- Private insurance company
- State-run agency
- Monopolistic state fund
Damage to your own business property. You’ll need to get a commercial property insurance policy to help protect your owned or rented building and business equipment.
Mistakes or errors in the professional services given to customers. Professional liability insurance can help cover your legal costs if a client sues you for a mistake in the services provided.
Claims that cost more than your liability limits. You’ll need a commercial umbrella insurance policy for expensive claims. This extends the limits of certain liability insurance policies.
Illegal acts or wrongdoing that you or your employees did purposefully.
The Dangers of Not Having General Liability Insurance
Judgments, settlements, legal defense fees and court costs can be extremely expensive. If someone files a claim against your business:
You’ll need legal counsel, which can cost over $100 per hour3
The maximum amount could easily exceed $75,000 if the claim ends up in court4
You may need to spend several thousands of dollars, even if the lawsuit gets dropped
When you add the cost of administrative work, legal secretaries and any settlements or judgments, your business could face a bill totaling hundreds of thousands of dollars. The right general liability insurance policy can help your business cover these costs.
Who Needs General Liability Insurance?
State laws generally don’t require you to carry general liability insurance. However, not having coverage could put your business at financial risk.
Its important to understand the general liability coverage definition so that your business is protected.You may also find that businesses will want to make sure you have the minimum coverage they require before agreeing to work with you. They want to make sure your business can survive a liability claim and continue to do what they hired you to do. So, they may ask you to provide proof of insurance, also known as a certificate of liability insurance.
When Should You Consider Buying General Liability Insurance?
General liability insurance is an essential coverage for many business owners. You may want to consider getting coverage if you:
Protect your business from liability claims
General liability insurance (GL), often referred to as business liability insurance, is coverage that can protect you from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations. General liability insurance quotes usually include:
- Bodily injury and property damage liability
- Personal and advertising injury
- Medical payments
- Products completed operations
- Damage to premises rented to you
- Learn how these coverages protect small businesses and how much you’ll want to consider for your unique risk.
Who needs liability insurance coverage?
Each business is different, so make sure you're covered for your needs. Examples of businesses that use general liability insurance are:
- Artisan contractors
- Small business owners
- Landscaping companies
- IT contractors
- Real estate agents
- Consulting
- Marketing
- Janitorial services
- And more
Check out our insurance for small business page to learn about small business coverages. If you still need guidance on whether general liability insurance is right for you, we're here to help. Contact our licensed agents with any of your concerns or questions.
Should you get general liability insurance for your LLC?
While an LLC provides some protection from personal liability for members, the protection is not absolute and your business can still be sued. General liability insurance for your LLC helps protect your small business from the consequences of third-party claims for injury or property damage.
Does your company need a different type of liability insurance coverage?
Being properly insured is the best way to protect your company. We're here to help. A few examples of companies that may be better suited to our other business insurance products
Your company provides professional services (e.g., education and training)
You rent or own a storefront
You use vehicles to transport goods, yourself, or employees
Who needs general liability insurance?
General liability insurance is often combined with property insurance in a Business Owners Policy (BOP), but it's also available to many contractors as a stand-alone coverage through the Progressive Advantage® Business Program.
As a contractor or small business owner, you need some form of business liability insurance to safeguard your livelihood.
A single accident could result in a lawsuit that you might not be able to handle. A great way to protect against this is to make sure you have liability coverage that matches your level of exposure.
Some employers or clients might also require you to carry a certain amount of general liability before you can work for them.
A general liability insurance policy — also known as business liability insurance — protects businesses from claims that result from normal business operations. Business liability insurance policy for protection from bodily injuries, medical payments, advertising injuries, and more.
GEICO can help small business owners and contractors get the coverage they need with a general liability insurance quote.
What does general liability insurance cover?
This liability insurance protects your small business from claims that occur during your normal business operations, such as:
- Property damage
- Physical injury
- Defense costs
- Personal and advertising injury
How much does general liability insurance cost?
The cost of general liability insurance is based on your specific business needs. Your business is unique, and so are the risks. Factors that influence the cost include:
- Type of work
- Location
- Number of employees
- GEICO can help you get an insurance policy with the right coverage at a great price. Start your general liability insurance quote now.
General liability insurance for contractors
If you're a contractor, you might only want general liability - not a full BOP. For example, you might not own any commercial buildings that require property insurance, or need to cover payroll or other operating expenses. However, you're still exposed to liability risks from your job.
You might be eligible to get general liability insurance, without the extra coverages in a BOP, through the Progressive Advantage Business Program. We offer general liability, as well as Blanket Additional Insured Coverage to contractors who qualify.
Blanket Additional Insured Coverage extends your existing liability insurance to other entities as required by some contracts with employers.
General liability insurance cost
In 2021, the national median cost of general liability insurance through Progressive was $48. The average price was $65.
Most customers find their monthly premium to be closer to the median price because expensive outliers often drive up the average cost. Your rate will depend on specific features of your business.
Discover more about general liability insurance cost, policy rating factors and money-saving tips to help you find the best combination between price and protection for your business.
Call us today, or start a quote online.
Have a store, office or building that’s open to the public, clients or vendors
Handle or work near client property
Advertise or create marketing materials for your business
Use social media personally or professionally
Get the Right Liability Coverage for Your Business
Many insurance companies offer general liability insurance, but not all of them specialize in small businesses. We have over 200 years of experience and have helped over 1 million small business owners. And we can do the same for you.
Whether you have questions about different types of insurance or need help with a claim, we’ve got your back. Our specialists are here for you and can help you get the right coverage for your business.
Get a general liability insurance quote today.
1,2,4 Based on an analysis of five years of claims data (2010-2014) from more than 1 million Business Owner’s Policies from The Hartford.
3 Lawyers.com, “How, and How Much, Do Lawyers Charge?”
