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What Is General Liability Coverage?
General liability insurance coverage helps protect your business from liability claims that can come up during normal business operations, such as:
- Third-Party Bodily injuries
- Product Liability
- Third-Party Property damage
- Libel, Slander, Copyright and Advertising Injury
General liability coverage is an essential part of many small businesses’ insurance plans. This coverage is also known as general liability insurance, business liability insurance and commercial general liability insurance (CGL). Start protecting your business and get a free general liability quote today.
On average, small business owners pay about $805 a year for general liability coverage.1 There are a number of factors that could affect your general liability insurance cost, such as your company’s:
We’re backed by more than 200 years of experience and have helped over 1 million small business owners. We know how to meet your business’ unique needs and will help ensure you get the right type of liability insurance coverage that fits your business best.
Who Does General Liability Insurance Cover?
General liability insurance coverage isn’t required by law, but it is important to have. Many small companies rely on this coverage to protect them from liability claims, like:
General liability coverages can help protect many types of businesses, whether you’re a seasoned business owner or looking for general liability insurance for startups, you can likely benefit from coverage. Be aware that some businesses may want you to provide a certificate of insurance to prove you have the right coverage before they agree to work with you.
What Are General Liability Insurance Coverages?
Third-Party Bodily Injury
If someone trips in your store and makes a bodily injury claim against your business, general liability insurance coverage can help pay their medical bills.
Product Liability
If a product you sell causes any injuries or damage to property, it could lead to a product liability insurance claim. For example, if you sell a power tool to a customer that ends up being defective and damages their vehicle, general liability insurance coverage can help cover their repair costs and your legal expenses.
Third-Party Property Damage
If you or your employees damage someone else’s property, you could be held legally responsible and they can sue your business. For example, if your employees cut down a client’s tree and it falls on their neighbor’s car, your general liability coverage can help pay for the damages.
Libel, Slander, Copyright and Advertising Injury
Let’s say you explain why your company is better than a competitor’s in a news interview. They choose to sue you, claiming you’ve harmed their reputation. General liability coverage can help cover your defense costs. Without it, you’d have to pay out-of-pocket for these expenses.
So, what does general liability insurance cover? We’ll help explain how this policy can benefit your business.
What Is Not Included in General Liability Coverage?
General liability insurance doesn’t help cover every type of general liability claim. It won’t help your business with claims related to:
Damage to your business property: If your business’ building or property gets damaged, you’ll need a commercial property insurance policy to help cover your repair or replacement costs.
Commercial auto accidents: If you or one of your employees gets into a work-related auto accident, a commercial auto insurance policy can help cover the damages.
Errors in your professional service: You aim to run your business perfectly, but mistakes can happen. If they do, your clients can sue. When this happens, professional liability insurance can help pay your legal defense costs.
Employee injuries or illnesses: If your employees get hurt or sick from their job, workers’ compensation insurance gives benefits to help them recover. Most states require this coverage if you have employees.
Data breaches: If confidential or sensitive information your business stores gets lost or stolen in a breach, data breach insurance can help cover your costs to notify those impacted or offer credit monitoring services.
Employment practices: Your current or former employees can be held legally responsible for:
- Harassment
- Wrongful termination
- Discrimination
If your business faces an employment-related liability claim, employment practices liability insurance can help cover your defense costs.
Lost income: You’ll need business income insurance to help replace your business’ lost income if it can’t open because of covered property damage.
Purposefully illegal or malicious acts: General liability insurance coverage doesn’t apply to claims from illegal or malicious acts that you or your employees intentionally do.
Extend Your General Liability Coverage With a Business Owner's Policy (BOP)
Many small business owners choose to extend their general liability insurance coverage by purchasing a Business Owner’s Policy (BOP). A BOP combines a business’ property and liability coverages into one convenient insurance policy. It can also be more affordable than purchasing two separate policies. Business owners can tailor their BOP by adding optional coverages for things like:
- Fire
- Theft
- Lawsuits
- Loss of income
- Data breach
- Professional liability
Why Do I Need General Liability Coverage?
Although most states don’t require it, the importance of liability insurance coverage is that it can help protect you and general liability insurance covers your business from costly liability claims.
Insurance companies recommend having a general liability insurance policy if you:
- Run your business from a store, building or office that’s open to the public
- Visit, work on or near your client’s property
- Create marketing or advertising for your business
- Use social media for professional reasons
How Much Does General Liability Coverage Cost?
On average, small business owners pay about $805 a year for general liability coverage.1 There are a number of factors that could affect your general liability insurance cost, such as your company’s:
- Risk exposure
- Location
- Years in business
- Type of industry
- Coverage limits
- Claims history
Get Insurance Quotes for General Liability Coverage
We’re backed by more than 200 years of experience and have helped over 1 million small business owners. We know how to meet your business’ unique needs and will help ensure you get the right type of liability insurance coverage that fits your business best.
Get a general liability insurance quote today and find out how we can help protect your small business.
Last Updated: May 3, 2024
1 Premium amounts presented are based on monthly premium paid by The Hartford's Small Business customers between 1/1/22 and 9/14/23 for 12-month policies. Premium is derived from a number of factors specific to your business and may vary.
Additional disclosures below.
Learn More About General Liability Insurance
Watch this video for more information about your coverage options.