General Liability Insurance
Core business protection against third-party bodily injury and property damage claims.
Typical cost: $400 – $2,500 per year
What Is General Liability Insurance?
Commercial General Liability (CGL) insurance protects your business from claims that you caused bodily injury or property damage to a third party, or that your advertising injured another business. It's often the first policy businesses purchase and may be required for contracts, leases, and licenses.
What It Covers
CGL covers slip-and-fall injuries at your location, damage caused by your employees at client sites, product-related injuries, and advertising injuries like defamation or copyright infringement. It pays for legal defense even if claims are groundless.
Coverage Limits
Standard CGL policies have per-occurrence limits (often $1 million) and aggregate limits (often $2 million). Higher limits are available, or you can add an umbrella policy for additional protection. Contracts often specify minimum limits you must carry.
What's covered
Bodily Injury
Covers medical costs and legal liability when someone is injured at your business or by your operations.
Property Damage
Pays for damage your business causes to others' property.
Personal Injury
Covers defamation, slander, libel, and invasion of privacy claims.
Advertising Injury
Protects against claims of copyright infringement or misappropriation in your advertising.
Medical Payments
Pays small medical bills for injuries at your premises regardless of fault.
Legal Defense
Covers attorney fees, court costs, and settlements for covered claims.
Pros and cons
Advantages
- Protects against the most common business liability claims
- Often required for leases, contracts, and business licenses
- Covers legal defense costs even for frivolous lawsuits
- Available to virtually all business types
- Can be bundled in a BOP for savings
- Worldwide coverage for US-based businesses
Considerations
- Does not cover employee injuries (need workers' comp)
- Professional mistakes require separate E&O coverage
- Auto incidents need commercial auto policy
- Employment practices claims need EPLI
- Cyber incidents need cyber liability coverage
Frequently asked questions
Related coverage
Bundled coverage combining general liability and commercial property insurance.
Errors & omissions coverage for professionals providing advice or services.
Coverage for businesses that manufacture, distribute, or sell products.
Required coverage for employee work-related injuries and illnesses.
Vehicle coverage for business-owned cars, trucks, and fleets.
Protection against data breaches, cyberattacks, and digital liability.
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