General liability insurance, also called business liability insurance, small business liability insurance, or commercial liability insurance, helps to protect you from claims that can result from the inherent risks of running your business. General liability insurance helps to protect you from “general” claims of bodily injury or property damage that your business might be legally responsible for.
Whether you’re a contractor or a small business owner, a single lawsuit can be financially devastating. Even if you’re found not at fault for the issue, you could spend tens or even hundreds of thousands of dollars in lawyer fees. General liability insurance gives you extra protection, so you’re prepared for a lawsuit, just in case it should ever happen. Your insurance policy can help to protect your business as well as your savings and investments.
While general liability insurance coverage applies to many situations, it doesn’t cover all of the potential accidents you might encounter while doing business. A typical general liability insurance policy won’t cover:
Other types of business insurance, such as workers’ compensation coverage and commercial vehicle insurance, better apply to these types of situations. Chances are that you will need a combination of several types of business insurance to ensure that your business is fully covered.
Get a free general liability insurance quote today to start exploring your options.
Business general liability insurance can help to protect you against significant expenses resulting from accidents. For example, if you own a restaurant, a general liability policy can help to pay for expenses resulting if a customer slips and falls. If you have a cleaning business, your policy can help to pay for any damage that might occur if you accidentally break a client’s property while cleaning. And if you’re a photographer, your general liability insurance can protect you if a client falls and is injured during a photo shoot.
While general liability insurance isn’t necessarily required by law, it’s an important investment in your business and in your financial protection. Some cities may require you have proof of general liability insurance before they will grant you a business license. Additionally, certain employers or clients might require you to provide proof of your general liability insurance before you can work for them, and you might need this insurance if you plan to sign a commercial lease.
The amount of insurance you need will depend on your business. It’s important to consider the type of work you do and the level of risk that your business faces. The number of employees and contractors you have will also affect the amount of coverage that you should buy. Your policy limits need to be high enough to pay for a lawsuit and any damages.
If you need a business general liability policy that meets a contract or lease requirement, then be sure to refer back to those specific requirements.
Once you get a personalized quote, you can better see your coverage level options and how different coverage will impact your insurance costs. A $1 million per occurrence and $2 million aggregate are fairly standard policy limits, but depending on your situation, you may need higher limits.
Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
