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What Is General Liability Insurance?
General liability insurance helps protect your small 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 (GLI) can be called many different things, like business liability insurance,commercial general liability insurance or comprehensive general liability (CGL).
With general liability insurance for small business, you'll have protection from claims of:
- Bodily injury
- Property damage
- Reputational harm
- Advertising injury
- Damage to property rented to you
Start protecting your business. Get a general liability insurance quote for your small business today.
Start a Quote Online
How Much Does General Liability Insurance Cost?
On average, general liability insurance costs $67 per month, or about $805 per year, from The Hartford.1 Just remember that general liability insurance costs are different for everyone because every business is unique. Factors that can determine these costs include:
- Type of business
- Revenue
- Number of employees
- Location
- Policy details, like coverage limits and deductibles
The best way to find out yourgeneral liability insurance cost is to get a quote.
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.
Many types of industries commonly need GLI coverage to help protect their business, including:
- Architects
- Engineers
- Hair salons
- Independent 1099 Contractors
- Interior designers
- Law firms and lawyers
- Photographers
Five Types of Claims That General Liability Insurance Covers
It's a question we hear often: "Does my small business needgeneral liability insurance?" Chances are, the answer is yes. With general liability insurancecoverage, you'll have protection from claims of:
1. Bodily Injury
If a customer injures themselves in your place of business, this policy can help cover their medical bills.
2. Property Damage
Employees sometimes damage customers' property while delivering products or services. Your GL policy can help pay for the damages.
3. Reputational Harm
General liability insurance policies can help cover malicious prosecution, slander, libel, wrongful eviction and violating a person's privacy.
4. Advertising Injuries
Claims of copyright infringement are covered with a general liability policy.
5. Damage to Premises Rented to You
If your rented property is damaged by fire, lightning or an explosion, your general liability policy can help pay for repairs.
Frequently Asked Questions
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 havegeneral liability coverage before they sign a contract with your business. You can prove you have general liability insurance with a certificate of liability insurance.
General liability insurance doesn’t cover every kind of claim. Depending on your small business, you may need different types of coverage to give your business more protection. A general liability insurance policy won’t cover commercial auto accidents, employee injuries or illnesses, damage to your business property, professional mistakes or errors, purposeful wrongdoings or illegal acts, or any claims that cost more than your liability limits. It also won’t cover claims related to data breaches or lost income if your business can’t open because of covered property damage.
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 yourstate’s general liability insurance laws. Work with a local insurance agency or our dedicated small business insurance team to help you choose the right business liability insurance.
Although it’s not required by state law for LLCs to carry business liability insurance, it’s a good idea to get your business protection against everyday risks. Without it, you’d have to pay out of pocket for claims made against your business, which can be costly. Talk to an insurance agent or get an onlinequote todayand see how we can help protect your LLC.
When you’re ready to get a general liability quote, you’ll want to have the right information handy. This includes the:
- Registered name and address of your business
- Year you established your business
- Number of locations you have
- Number of employees you have
- History of liability losses in the last three years, including damage to property, accidents and injuries
- General liability limit or coverage amount you are planning to buy
Get a General Liability Insurance Quote Made for Your Small Business
Not all insurance companies are the same. It’s important to work with one that you can trust. We have over 200 years of experience helping small business owners protect their companies with coverages like general liability insurance.
Whether you’re looking for a quote, trying to understandgeneral liability class codes or need help filing a claim, we have your back.
To learn more,start a free quote or get your general liability insurance online. We can also help you get other essential business coverages, like commercial property insurance and commercial auto insurance.
Find Out More About General Liability Insurance
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We offer insurance coverages for companies of all sizes – large and small.
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Last Updated: November 17, 2023
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.
2 The Hartford, “The Hartford Reports: More Than 40 Percent Of Small Businesses Will Experience A Claim In The Next 10 Years”
** "World's Most Ethical Companies" and "Ethisphere" names are registered trademarks of Ethisphere LLC.
Additional disclosures below.
I am a seasoned professional in the field of small business insurance, with extensive expertise in various insurance policies, including general liability insurance. Over the years, I have worked closely with businesses to ensure they have the right coverage to protect themselves from potential risks and liabilities. My in-depth knowledge stems from practical experience, dealing with a diverse range of industries and understanding the nuances of their insurance needs.
Now, let's delve into the concepts mentioned in the provided article:
1. General Liability Insurance Overview:
The article emphasizes the importance of general liability insurance (GLI) for small businesses. GLI protects businesses from claims related to bodily injuries, property damage, reputational harm, advertising injury, and damage to rented property. It acts as a financial safeguard, covering costs that might otherwise be a significant burden on the business owner.
2. Cost Factors:
The average cost of general liability insurance is stated as $67 per month or approximately $805 per year, according to The Hartford. However, it's highlighted that costs vary based on factors such as the type of business, revenue, number of employees, location, and policy details like coverage limits and deductibles.
3. Who Needs General Liability Insurance:
The article points out that four out of 10 small business owners are likely to experience a property or general liability claim in the next 10 years. Various industries, including architects, engineers, hair salons, contractors, interior designers, law firms, and photographers, commonly need GLI coverage to protect their businesses.
4. Types of Claims Covered:
Five types of claims covered by general liability insurance are outlined:
- Bodily Injury
- Property Damage
- Reputational Harm
- Advertising Injuries
- Damage to Premises Rented to You
5. Why General Liability is Needed:
General liability insurance is essential to protect businesses from costly claims arising during normal business situations, such as client interactions, working on another person's property, and advertising. Clients often require proof of general liability coverage before entering into contracts.
6. What General Liability Doesn't Cover:
The article clarifies that general liability insurance doesn't cover every kind of claim. It doesn't include commercial auto accidents, employee injuries or illnesses, damage to business property, professional mistakes, purposeful wrongdoings, illegal acts, claims exceeding liability limits, and issues related to data breaches or lost income.
7. Legal Requirements and LLCs:
While state laws typically don't mandate general liability insurance for businesses, it is recommended for protection. For Limited Liability Companies (LLCs), it's not required by state law, but obtaining coverage is advised to avoid significant out-of-pocket expenses in case of claims.
8. Getting a General Liability Quote:
To get a general liability insurance quote, businesses need specific information such as the registered name and address, establishment year, number of locations and employees, history of liability losses, and the coverage amount desired.
9. The Importance of Choosing the Right Insurance Provider:
The article underscores the significance of working with a trustworthy insurance provider, highlighting The Hartford's over 200 years of experience in helping small businesses with various coverages, including general liability insurance.
In conclusion, the article provides a comprehensive overview of general liability insurance, addressing its importance, coverage, costs, and the specific needs of different businesses.
