General Liability Insurance, often referred to as commercial general liability (CGL), provides coverage for your business against claims of bodily injury, property damage, or personal and advertising injury caused by your business operations. It’s a foundational policy for businesses, offering broad protection against common risks.
This coverage applies whether the incident occurs on your premises, at a client’s location, or as a result of your business activities elsewhere.
What’s Not Covered by General Liability Insurance?
While GLI provides broad protection, it does not cover everything. For instance:
- Employee Injuries: These are covered under Workers’ Compensation Insurance.
- Professional Errors: Mistakes in professional services require Professional Liability Insurance.
- Business Property Damage: Damages to your own business property are typically covered under Property Insurance.
- Intentional Acts: Coverage excludes intentional harm or fraudulent activities.
Who Needs General Liability Insurance?
Almost every business can benefit from GLI, but it’s particularly crucial for:
- Retailers, restaurants, and service providers who interact with customers on-site.
- Contractors and construction companies working on client properties.
- Businesses that advertise or publish content, which could lead to copyright or defamation claims.
- Any company leasing or owning office or retail space, as landlords often require proof of insurance.
How Much Does General Liability Insurance Cost?
The cost of GLI depends on various factors, including:
- Industry and Risk Exposure: High-risk industries like construction may pay more than low-risk businesses.
- Business Size and Revenue: Larger companies with higher revenues typically face higher premiums.
- Coverage Limits: Higher policy limits and lower deductibles can increase costs.
On average, small businesses pay between $300 and $1,000 annually for GLI, but prices vary widely.
How to Get General Liability Insurance
- Evaluate Your Risks
Assess your business operations to determine potential liabilities. - Choose the Right Insurer
Work with reputable providers experienced in your industry. - Customize Your Coverage
Tailor your policy limits and deductibles to balance affordability and protection. - Bundle Policies
Many insurers offer discounts if you bundle GLI with other policies, such as Property Insurance or a Business Owner’s Policy (BOP).