General Liability Insurance: A Practical Guide to Protecting Your Business
Running a business means taking smart risks — but not leaving yourself exposed to the predictable ones. General liability insurance is the foundational coverage that helps protect your company from common third-party claims like customer injuries, property damage, and advertising-related lawsuits.
What General Liability Insurance Covers
- Customer bodily injury: Covers medical costs and legal expenses if a customer is injured at your location or job site.
- Third-party property damage: Pays for repairs if your business accidentally damages someone else’s property.
- Personal and advertising injury: Helps with claims like libel, slander, or copyright issues in marketing.
- Legal defense costs: Covers attorney fees and court costs even if claims are unfounded.
What It Doesn’t Cover
General liability typically does not cover employee injuries, professional mistakes, your own property damage, cyber incidents, or auto accidents involving business vehicles.
Who Needs General Liability Insurance?
Most businesses benefit from general liability coverage, especially if customers visit your location, you work at client sites, or your services could cause accidental harm.
How Much Coverage Is Typical?
Many small businesses start with $1M per occurrence and $2M aggregate limits, but ideal limits depend on your industry, size, and contract requirements.
How Premiums Are Determined
Premiums are based on industry risk, location, revenue or payroll, claims history, and selected limits and deductibles.
Why This Policy Matters
One incident can trigger costly legal claims. General liability insurance helps prevent a single accident from becoming a business-ending financial event.
