🛡️ Coverage Guide

General Liability Insurance

Q: What does general liability insurance cover?

GL covers three main categories: (1) Bodily injury — a customer slips in your office or a delivery person is injured at your location. (2) Property damage — you accidentally damage a client's equipment or a third party's property. (3) Advertising injury — claims of libel, slander, copyright infringement, or misrepresentation in your marketing materials.

Q: How much does general liability insurance cost?

For a solo service business, GL typically starts at $250–$600/year ($22–$50/month). Small businesses with 2–25 employees usually pay $500–$2,000/year. Construction and restaurants pay more due to higher risk. Costs depend on industry, revenue, location, and claims history.

Q: Is general liability insurance required by law?

GL is not federally or state-mandated in most cases. However, it is effectively required in practice — most commercial landlords require it in your lease, many clients (especially enterprise) require proof of GL before signing a contract, and government contracts almost always require it.

Q: What does GL NOT cover?

GL does not cover: (1) Your own professional mistakes or negligence — that's E&O. (2) Employee injuries — that's Workers' Comp. (3) Your own business property — that's Commercial Property. (4) Vehicle accidents — that's Commercial Auto. (5) Data breaches — that's Cyber Liability.

Q: What are typical GL policy limits?

Standard GL policies have two key limits: per-occurrence (typically $1M) and aggregate (typically $2M). The per-occurrence limit is the max payout for a single claim. The aggregate is the total your insurer will pay in a policy year.

Q: Can I get a certificate of insurance (COI) the same day?

Yes. Digital insurers like Next Insurance, Hiscox, and biBERK issue COIs within minutes of binding coverage online. Traditional brokers may take 1–3 business days.

The foundation of business protection. Covers bodily injury, property damage, and advertising claims — and why every business needs it.

🕓 Last Updated: April 2026

What Is General Liability Insurance?

General Liability (GL) insurance is the most fundamental business coverage. It protects your business against third-party claims of bodily injury, property damage, and advertising injury (like libel or copyright infringement). If someone is hurt at your location, if you damage a client’s property, or if a competitor claims your marketing infringed on their trademark — GL covers the legal defense costs, settlements, and judgments.

🩺 Bodily Injury

A customer, vendor, or visitor is injured at your business location or by your operations. Covers medical expenses, legal fees, and settlements.

🛠️ Property Damage

You or your employees accidentally damage a third party’s property while working. Covers repair/replacement costs and legal defense.

📢 Advertising Injury

Claims of libel, slander, copyright infringement, or misrepresentation in your ads, marketing, or public statements.

⚖️ Legal Defense

Even frivolous lawsuits cost money to defend. GL covers attorney fees, court costs, and settlements — even if the claim has no merit.

⛔ What GL Does NOT Cover

Professional mistakes — bad advice, missed deadlines, negligent work (that’s E&O insurance)
Employee injuries — on-the-job injuries to your own staff (Workers’ Comp)
Your own property — your office, equipment, inventory (Commercial Property)
Vehicle accidents — company vehicles (Commercial Auto)
Data breaches — cyber incidents, ransomware (Cyber Liability)
Intentional acts — deliberate harm or fraud is never covered

Who Needs General Liability Insurance?

Every business. Whether you’re a solo freelancer working from home or a 500-person company with multiple offices, GL is the baseline coverage.

Landlords require it — virtually every commercial lease requires proof of GL before you can sign.
Clients require it — enterprise clients, government contracts, and many B2B agreements mandate GL coverage with minimum limits (usually $1M/$2M).
Lawsuits happen to everyone — 40% of small businesses face a liability claim in their first 10 years. A single uninsured claim can bankrupt a small company.
It’s affordable — solo/micro businesses can get GL for as little as $22/month.

✓ VERIFIED Industries with the highest GL claim rates: construction, restaurants/food service, retail with foot traffic, healthcare/wellness, and events/entertainment.

Cost Ranges by Business Type & Size ESTIMATES

Annual premium ranges for a standard $1M/$2M GL policy.

Business Type	Annual Revenue	Employees	Annual Premium
Tech / SaaS (office-based)	<$500K	1–5	$250–$500 EST
Consulting / Professional Services	<$500K	1–10	$300–$700 EST
Retail Store	$100K–$1M	2–20	$500–$2,000 EST
Restaurant / Food Service	$200K–$2M	5–40	$1,500–$5,000 EST
Construction / Trades	$100K–$2M	2–30	$2,000–$8,000 EST
E-commerce (no storefront)	<$500K	1–5	$250–$600 EST
Marketing Agency	$200K–$2M	5–25	$500–$1,800 EST
Fitness / Wellness Studio	$100K–$1M	2–15	$800–$3,000 EST

Get a personalized estimate: Premium Estimator →

Common General Liability Claims

Real-world scenarios where GL coverage pays out.

Slip & Fall at Your Office

A client visits, trips on a loose cable, and breaks their wrist. They sue for medical bills and lost wages.

$5,000–$25,000 EST

Property Damage at Client Site

Your contractor spills coffee on a client’s $4,000 laptop during an on-site meeting.

$2,000–$10,000 EST

Advertising Injury Lawsuit

A competitor claims your Google Ads copy uses their trademarked phrase and sues for damages.

$10,000–$50,000 EST

Product-Related Injury

A customer claims your product caused an allergic reaction. They seek medical reimbursement.

$5,000–$100,000+ EST

Delivery / Operations Damage

Your delivery driver accidentally backs into a client’s loading dock gate.

$3,000–$15,000 EST

Defamation / Libel Claim

A former partner claims your blog post defamed their business.

$10,000–$75,000 EST

How to Buy General Liability Insurance

Digital insurers (fastest) — Next Insurance, Hiscox, biBERK let you get quotes and bind coverage online in under 10 minutes. You’ll get a COI immediately.
Insurance broker — A broker shops multiple carriers on your behalf. Best if you need multiple coverage types or have unusual risks.
Direct from a carrier — Call or visit The Hartford, Progressive Commercial, etc. directly.

What to look for:

Limits: Standard is $1M per occurrence / $2M aggregate.
Deductible: Some GL policies have $0 deductible; others $250–$1,000.
Endorsements: Additional insured, hired/non-owned auto, waiver of subrogation.
AM Best rating: A- or better is the standard for carrier reliability.

⚠️ Seek Expert Advice

This guide is for educational purposes only and does not constitute insurance advice. Coverage needs vary by business. Consult a licensed insurance agent or broker for personalized recommendations. BizStackHub is not a licensed insurance provider.

Frequently Asked Questions

Common questions about general liability insurance.