General liability insurance is the foundation of most small business insurance programs. It protects your company when someone outside your business claims you injured them, damaged their property or harmed their reputation. Many clients and landlords will not work with you without it.
What general liability insurance covers
- Third-party bodily injury: a customer slips in your shop or is injured by your work.
- Third-party property damage: you or your team damage a client’s property while working.
- Personal and advertising injury: claims of libel, slander or copyright infringement in your advertising.
- Products and completed operations: injuries or damage caused by your products or finished work.
- Legal defense costs: attorney fees and court costs, often even if the claim is groundless.
What it does not cover
- Injuries to your own employees: you need workers’ compensation.
- Mistakes in professional advice or services: you need professional liability.
- Damage to your own property: you need commercial property insurance.
- Vehicle accidents: you need commercial auto insurance.
- Intentional acts and contractual liabilities beyond the policy terms.
Who needs general liability insurance?
Almost every business that interacts with customers, visits client sites or sells products. It is especially important for contractors and trades, retail stores, restaurants, cleaning services, event businesses, fitness professionals and anyone who signs contracts or leases.
Understanding policy limits
General liability policies usually show two limits, such as $1 million per occurrence and $2 million aggregate. The per-occurrence limit is the most the policy pays for a single claim; the aggregate is the most it pays during the policy period. Many contracts specify the minimum limits you must carry.
What affects the price
Your industry risk, location, revenue, number of employees, years in business, claims history and the limits you choose. Bundling with property insurance in a business owner’s policy can lower the total cost.
Get general liability coverage in minutes
Get a quote online, buy your policy and share a certificate of insurance with your clients right away with NEXT Insurance.
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Frequently asked questions
How fast can I get general liability insurance?
With online insurers, you can often get a quote and coverage the same day, and download a certificate of insurance immediately.
Does general liability cover my employees’ injuries?
No. Employee injuries are covered by workers’ compensation insurance.
Do I need general liability if I work from home?
If clients visit you, you visit clients or a contract requires it, general liability is usually a smart choice.
Related business insurance guides
This page is for general information only and is not insurance, legal or tax advice. Requirements, coverage and prices vary by state, industry and insurer. Review policy documents and speak with a licensed agent before buying.