General Liability Insurance For Small Businesses
What Is General Liability Insurance?
General liability insurance is coverage for third-party bodily injuries or property damage caused by your business. It’s sometimes referred to as business liability insurance, commercial general liability insurance, or public liability insurance.
Simply put, general liability business insurance helps you manage the liabilities your business has in its dealings with the public. This can range from accidents happening at your place of business to accidents happening as a result of your business operations.
What Does General Liability Insurance Cover?
A general liability insurance policy helps to pay for incidents of injury or damages caused by your business. It may cover the cost of:
The most common general liability claims involve slips, trips, and falls or accidental damage to personal property. For example, a customer slips over a puddle of spilled liquid in a store or a cleaning business mistakenly discolors a rug with bleach. Without insurance, you would have to pay for these types of damages on your own.
General liability insurance does not cover first-party bodily injuries or property damage. For example, something that happens to you or your employees. If you hurt yourself on the job, you’ll need to have your medical bills covered by your own insurance.
We go more in-depth on what general liability doesn’t cover in the section, “What Does General Liability Insurance Not Cover?” below.
How Much General Liability Coverage Do I Need
The amount of general liability coverage your business needs depends on your business, such as:
Coverage A: Bodily Injury & Property Damage Liability
Coverage B: Personal & Advertising Injury Liability
Coverage C: Medical Payments Liability
Coverage D: Damage to Premises Rented to You
What Does General Liability Not Cover?
Who Needs General Liability Insurance?
Do I Need Business Liability Insurance For My LLC?
If you were to be named in a lawsuit, your LLC may help you be found not guilty. However, you would still be responsible for paying all the legal fees needed just to defend your business. This is where insurance can come in hand.
Insurance is a financial support system that can pay for the incidents an LLC cannot or will not cover. This may include paying for legal guidance, judgements, medical expenses, and settlements.
How Much Does General Liability Insurance Cost?
*Pricing for Insurance Canopy is pulled from fixed base rate policies.
*Pricing for Progressive is from 2020.
*Pricing for Hiscox can vary depending on the policy type and coverage.
**Some policies require a quote, and pricing may vary depending on coverage. Not all policies offer monthly payments; annual premiums were calculated on a monthly basis for this study only.
How Does General Liability Insurance Protect My Business?
According to the US Department of Justice, only 4–5% of personal injury lawsuits go to trial. The rest reach out of court settlements. The Insurance Information Institute recorded the median cost of personal injury jury awards for all liabilities in 2020 was $125,366.
How Do I Purchase General Liability Insurance?
Insurance Canopy’s general liability insurance is found in all of our coverage options. We typically combine this coverage with product liability insurance or professional liability insurance—or sometimes all three!
Is General Liability Insurance Required By Law?
No, there are no laws or legal requirements to carry general liability insurance. However, you may find you have contracts with other businesses that require you to have coverage or show proof of insurance. So while it might not be something you’re legally required to have, it could make the difference in being employed or entering into a business partnership.
Is General Liability Insurance All I Need For My Business?
At Insurance Canopy, we allow you to customize your general and product liability policy to include other coverages such as: