What is general liability insurance?
General liability insurance
- This policy provides coverage for customer injuries, customer property damage, and lawsuits related to both. It's usually the first policy small business owners purchase because they often need it to sign commercial leases and client contracts.
When do businesses need general liability insurance?
Almost every business needs some form of general liability insurance coverage (also known as commercial general liability insurance) to protect company assets and sign important contracts. General liability can help small businesses pay for unexpected lawsuit costs, sign deals with new clients, rent commercial space, and avoid bankruptcy. This policy also reassures clients that you'll be able to compensate them if you damage their property or injure someone with your work. Most small businesses get a policy shortly after they are founded. Read more about general liability coverage.
Businesses that purchase a policy typically:
- Have a location that is open to the public.
- Interact with people on a job site.
- Handle client property.
- Rent business space.
- Sell products to customers.
- Advertise or market their services.
- Use social media and have an internet presence.
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General liability insurance protections
| Home business | Freelancer | Small business | |
|---|---|---|---|
| Liability protection | You may need general liability to pay for business-related bodily injury and property damage lawsuits. | A client may ask you to provide a certificate of insurance in case you damage equipment at their office. | You sign a commercial lease and your landlord requires general liability. |
| Advertising injury protection | You launch a website and want protection for slander, libel, and accidental copyright infringement. | You want protection in case someone involved with a project accuses you of libel or slander. | You launch your first advertising campaign and want protection for advertising injury lawsuits. |
General liability insurance costs
General liability insurance can cost as little as $21 per month for some small businesses. Several factors affect policy costs, including:
- Industry and risk factors.
- Coverage limits.
- Location.
- Number of employees.
Learn more about general liability insurance
- Is general liability insurance required by law?
- How does general liability insurance differ from professional liability insurance?
- Does general liability insurance cover independent contractors?
- How do I get a certificate of liability insurance?
- How do I make a general liability insurance claim?
Find more answers to frequently asked questions about general liability.