General Liability Insurance for Small Business
General liability insurance is the baseline commercial coverage that protects your business from third-party injury, property damage, and advertising claims. It's required by most leases, most client contracts, and any situation where your business interacts with the public.
For most businesses doing under $2M in revenue, a $1M per occurrence / $2M aggregate GL policy costs $400–$2,500/year depending on industry and claims history.
What General Liability Insurance Covers
GL is not all-in-one coverage. It covers specific, defined categories of third-party claims.
Third-Party Bodily Injury
A client slips in your office. A delivery driver trips over your equipment at a job site. GL pays for their medical bills and legal defense if they sue.
Third-Party Property Damage
Your contractor damages a client's flooring. Your employee backs a vehicle into a customer's fence. GL covers repair costs and legal exposure.
Advertising & Personal Injury
Claims of libel, slander, copyright infringement in your advertising, or invasion of privacy. More relevant than most business owners realize in the social media era.
Legal Defense Costs
Even if you win a lawsuit, defense costs can run $20,000–$100,000+. GL includes defense coverage — this alone justifies the premium for most businesses.
What General Liability Does NOT Cover
Most coverage gaps that hurt businesses come from assuming GL covers more than it does. These exclusions are standard across virtually all commercial GL policies:
- ✕Professional errors or omissions (need E&O/professional liability)
- ✕Employee injuries (need workers' compensation)
- ✕Your own business property damage (need commercial property)
- ✕Commercial vehicles (need commercial auto)
- ✕Intentional acts or fraud
- ✕Cyber breaches and data theft (need cyber liability)
See also: Professional Liability (E&O) · Workers' Compensation · Business Owner's Policy (BOP)
Get a General Liability Quote for Your Business
Apply once and get matched to licensed commercial insurance partners who specialize in your industry.
What Determines Your GL Premium?
General liability underwriting uses a handful of key risk factors. Understanding them helps you present your business accurately and avoid overpaying.
General Liability Insurance — Common Questions
Specific answers on coverage limits, cost, and compliance.
Related Insurance Coverage
Stop Operating Without Coverage
One uninsured liability claim can cost more than five years of premiums. Get matched to a commercial GL policy today.