General Liability Insurance
General liability insurance protects your business from common risks like customer injuries, property damage, and advertising claims. It covers legal costs and helps you meet lease and contract requirements.
Choose the right coverage from trusted insurance providers.
Why is general liability insurance important for small businesses?
General liability insurance protects small businesses from common risks like customer injuries, property damage, and advertising claims. It covers legal costs and is often required for leases, loans, and contracts.
At just $42 per month on average, it’s an affordable way to safeguard your business, especially if you:
- Have a physical location open to the public
- Work closely with clients or handle their property
- Rent or own commercial space
- Advertise your services
Additional Coverages to Consider
Protect your business from unexpected risks with these essential coverages:
Business owner’s policy
Bundles general liability and commercial property insurance for cost-effective protection against property damage and liability claims.
Under this plan
Customer injuries
Business interruption incidents
Accidental damage to customer property
Workers’ compensation insurance
Covers medical expenses and lost wages for work-related injuries or illnesses. Required in most states for businesses with employees.
Under this plan
Employee medical expenses
Disability benefits
Workplace injury lawsuits
Commercial auto insurance
Protects business vehicles by covering accident-related legal costs, medical bills, and property damage.
Under this plan
Car accidents
Vandalism and theft
Weather damage
Cyber insurance
Covers expenses from cyberattacks, data breaches, and legal fees, ensuring your business stays secure online.
Under this plan
Data breach investigations
Customer notification expenses
Fraud monitoring services
What does general liability insurance cover?
It helps protect your business from common third-party claims, covering legal expenses, medical bills, and settlements. It includes:
- Bodily Injury: Covers medical costs and legal fees if a customer is injured at your business.
- Property Damage: Pays for repairs or replacements if your business accidentally damages someone’s property.
- Product Liability: Protects against lawsuits related to defective products, labeling mistakes, or harm caused by your products.
- Personal & Advertising Injuries: Covers legal expenses for claims such as slander, libel, copyright infringement, or invasion of privacy.
This essential coverage safeguards your business from unexpected risks, ensuring financial protection and peace of mind.
How much does general liability insurance cost?
The cost of general liability insurance varies by business. Insurers consider factors like industry risks, location, employee count, coverage limits, and past claims. On average, small businesses pay $42 per month, with 29% paying under $30.
Is general liability insurance required by law?
Generally, liability insurance isn’t legally required in most cases, but some industries like construction and cannabis may need it to comply with state laws or licensing requirements.
While not mandated by law for all businesses, landlords, lenders, business partners, or clients often require proof of coverage. For example, Amazon sellers must have insurance once their sales reach a certain level.
Eagle Nation provides reliable general liability insurance to meet these needs. A landlord or client may request an ACORD certificate of insurance as proof that your business can cover injury or property damage claims. Having this coverage provides peace of mind to property managers, banks, and customers, ensuring they won’t bear the costs of a lawsuit against your company.
Do independent contractors need general liability insurance?
Yes, independent contractors and subcontractors can be sued for customer injuries, property damage, or advertising issues, just like any small business. Even without a physical office or expensive equipment, GLI offers essential protection.
If you don’t want your own policy, you can ask clients to add you as an additional insured on their coverage. However, this may increase their insurance costs, and your coverage will end when your contract with them expires.
Do I need general liability insurance for my LLC?
Yes. While an LLC protects your personal assets, it doesn’t shield your business from lawsuits. A single slip-and-fall injury or damaged customer property could lead to costly legal claims.
Small LLCs with limited resources are especially vulnerable, making general liability insurance essential. Plus, many landlords and clients require this coverage for leases and contracts.
What does general liability insurance not cover?
While general liability insurance is essential, it doesn’t cover everything. Here are key areas that require additional coverage:
- Professional Mistakes – Lawsuits for missed deadlines, errors, or contract breaches require professional liability (E&O) insurance.
- Employee Injuries – Workers’ compensation covers medical bills and lost wages for work-related injuries.
- Property Damage & Theft – A business owner’s policy (BOP) or commercial package policy (CPP) is needed to protect business assets.
- Employee Lawsuits – Employment practices liability insurance (EPLI) covers claims of discrimination, harassment, or wrongful termination.
- Business Vehicles – Commercial auto insurance is required for company-owned vehicles, while HNOA covers rented or personal vehicles used for work.
- Liquor Liability – Businesses serving alcohol need liquor liability insurance to cover legal claims from alcohol-related incidents.
Two ways to start your coverage
Quotes online
Talk to an agent
Verified business insurance reviews
Hear from customers like you who purchased insurance.
FAQs about General Liability Insurance
Your coverage should meet contract or lease requirements and be enough to cover potential lawsuits. Consider your business size, number of employees, and risk level.
Most small businesses choose a $1 million per occurrence/$2 million aggregate policy. This covers up to $1 million per claim and $2 million total per year.
For higher risks, commercial umbrella insurance can increase coverage limits. Also, ensure your deductible is affordable, as you must pay it before insurance kicks in.
Most businesses, especially those that interact with clients or rent commercial space, need general liability insurance. Even home-based businesses can benefit from this coverage. It protects against lawsuits from customers or competitors, helping businesses stay financially secure. Because of its importance, many small business owners purchase this policy as soon as they start their business.
General liability insurance does not cover:
- Intentional copyright infringement or negligence
- Willful harm or property damage
- Items in your temporary possession (care, custody, and control)
To cover this gap, bailee coverage (a type of inland marine insurance) can be added. Always review your policy and consult an insurance agent to ensure full protection.
Coverage A: Bodily Injury & Property Damage
Protects against claims if your business causes injury or damages property (e.g., slip-and-fall accidents or product-related injuries).
Coverage B: Personal & Advertising Injury
Covers libel, slander, copyright infringement, and privacy violations (e.g., being sued for false advertising or unauthorized data sharing).
Coverage C: Medical Payments
Pays medical bills for non-employees injured at your business, regardless of fault. Unlike A & B, it does not cover legal costs.
- General liability covers customer injuries, property damage, and advertising injuries.
- Professional liability protects against lawsuits over mistakes or poor service quality.
Most businesses need general liability insurance, while service-based professionals (e.g., accountants, lawyers, consultants) should also get professional liability insurance.
Media and advertising businesses may need media liability insurance, as general liability doesn’t cover libel, slander, or certain advertising risks.
GLI gave me peace of mind at an affordable price. At just $42 per month, it covers legal costs, property damage, and customer injuries—perfect for my small business!