General Liability for Small Businesses

General liability insurance is the foundation of business coverage. It protects your company against third-party claims of bodily injury, property damage and certain personal injuries - a customer who slips in your store, a client whose property you damage, a competitor who claims you disparaged them. Many contracts and leases will not be signed without it.

What it covers

• Bodily injury. Medical costs and legal liability when a non-employee is hurt because of your operations or premises.
• Property damage. When you damage someone else's property, including at a client's site.
• Personal and advertising injury. Claims of libel, slander, false arrest or copyright infringement in your advertising.
• Products and completed operations. Claims arising from a product you sold or a job you finished.
• Legal defence costs. Often the largest part of a claim, covered even if the allegation is groundless.

Premium ≈ revenue class × risk category × limits chosen

What it does not cover

General liability excludes professional errors - those need professional liability or errors and omissions coverage. It excludes employee injuries, which fall under workers compensation. It does not cover your own property, which needs a commercial property policy. And it excludes intentional acts and most auto exposure.

How the premium is set

Insurers price on your industry's risk class, annual revenue, payroll, location, number of employees, and the limits and deductible you choose. A low-risk office might pay a few hundred dollars a year; a contractor or restaurant pays more because claims are more frequent and severe.

A business owner's policy can bundle it

A BOP (business owner's policy) packages general liability with commercial property, usually at a discount to buying them separately. It is the standard starting point for many small businesses.

Frequently asked questions

Is general liability required by law? Rarely by law, but frequently by landlords, clients and licensors.

Does it cover my work? Only the resulting third-party damage, not a claim that your work was faulty - that is professional liability.

Estimate your premium with the calculator below.