Frequently Asked Questions About General Liability Insurance 

“What is general liability insurance?” It’s a question we get often, and we’re here to help you understand it better. General liability insurance is a type of business insurance under the general liability umbrella that helps cover claims that your company caused:

 

Other names for this coverage include commercial general liability insurance (CGL) and business liability insurance.

The best way to get general liability insurance for your business is to get a quote. We’re an insurance company that’s helped over 1.5 million small business owners get the coverage they need for over 200 years. Our specialists can help answer any questions you have and help you find the right amount of coverage for your business.

A certificate of liability insurance is a document that proves you have general liability insurance coverage. It is sometimes referred to as proof of insurance, an ACORD 25 form or a general liability insurance certificate. This document provides details about your policy’s coverage amounts and limits, insurance company, named insured and the policy effective date.

If you have a small business, you’ll most likely need general liability insurance. You never know when a claim or lawsuit can happen. Unexpected lawsuits are expensive and could put you out of business. With general liability insurance, you’re covered against claims that your business might’ve caused bodily injury, property damage or personal injury to another person.

Liability insurance is a general insurance term used to describe the different types of coverage that can help protect your business from lawsuits or claims against it. Liability insurance can help financially protect your business if you’re found legally responsible for a property damage or personal injury to a third party. 

It’s essential for small business owners to have liability insurance because an unexpected claim could financially devastate your business. General liability insurance is important because without it, you’d have to pay out of pocket for costly claims that your business caused bodily injury or property damage to another person. 

General liability class codes are used to help classify a business’ risk level. Different organizations manage their own classification systems and general liability class codes, such as the Insurance Services Office (ISO), National Council on Compensation Insurance (NCCI), North American Industry Classification System (NAISC) or Standard Industrial Classification (SIC). 

A general liability insurance audit examines your business’ payroll and risk exposures. It also helps make sure you’re paying the correct amount for your general liability insurance and getting the right amount of coverage for your business’ needs.

We make it easy for small business owners to get a general liability insurance quote online, all it takes is a few clicks. We’re backed by more than 200 years of experience and our specialists can work with you to determine what types of business insurance you may need. Get a quote today and see how we can protect your business.

General liability insurance is an essential coverage to have if you own a small business. Some of the most common general liability claims that come up during normal business operations are:

 

Yes, you can bundle general liability insurance with other essential types of business insurance. Most small business owners get general liability insurance as a part of a Business Owner's Policy (BOP), but you can also get it as a standalone policy. A BOP contains three coverages:

 

General liability insurance isn’t required by law, but it’s important to have if you own a business. Many small business owners reply on this type of insurance to protect them from unexpected liability claims. For example, if a customer slips and falls in your business and sues you for bodily injury, you’ll want to be financially protected. While it might not be required by state laws, some business contracts may require you to have this insurance.

The cost of general liability insurance will often vary depending on several different factors. On average, our customers paid about $810 annually, or $68 a month, for general liability insurance.**  

Commercial general liability insurance is another name for general liability insurance. The cost for commercial general liability will often vary depending on a number of factors. On average, our customers paid about $810 annually, or $68 a month, for general liability insurance.**

The cost of product liability insurance will be what you pay for general liability insurance since it’s already included as a part of your GLI policy. Our customers typically pay an average of $810 annually, or $68 a month, for general liability insurance.** Keep in mind that insurance cost depends on a number of different factors, including your industry, location and risk exposures. 

On average, a $1 million liability insurance policy costs about $69 a month, or $824 a year, for our small business owners.** However, it’s important to know that your liability insurance cost may vary depending on several different factors, like your industry, risk exposure, claims history and payroll size.

If you’re looking for business insurance, you may be wondering “What does general liability insurance cover?” We’re here to help. General liability insurance helps cover small businesses against claims that it caused bodily injury, property damage or personal injury, like libel or slander. It can also help pay for a customer’s medical bills or your legal costs to defend your business. 

General liability insurance coverage helps protect your business from claims that could come up during normal business operations. Some examples of claims that general liability insurance can help cover include:

 

There are three main types of liability insurance coverage:

 

Product liability insurance can help protect your business against claims that a product you made or sold caused someone bodily injury or property damage to their belongings.1 Product liability insurance is included as a part of your general liability insurance policy, it’s also available as a standalone policy.

Project-specific liability insurance, or short-term general liability insurance, is a type of business insurance designed for short projects that can take between two hours and two weeks to complete. It gives you the same coverage as a general liability insurance policy – just for a shorter duration.

Business liability insurance, also known as general liability insurance and commercial general liability insurance, helps protect your business from third-party claims of bodily injury or property damage.

Builders risk insurance helps protect the buildings and structures that are under construction or renovation. It also can help protect the materials and equipment used in construction projects. This coverage is different than general liability insurance. If you own a construction company, you should have both builders risk insurance and general liability insurance.

Contractual liability insurance is a coverage you can add on to your general liability insurance policy. This type of insurance can help protect small business owners from claims associated with their contracts. When a business owner signs a contract, they take on liabilities, known as contractual liability.

Public liability insurance is essentially an older form of general liability insurance. Public liability insurance helps cover claims made against your business by the general public, such as customers, delivery people or visitors. While they’re similar coverages, general liability insurance offers broader coverage than public liability insurance. Many insurers don’t offer public liability insurance anymore but offer general liability insurance instead. 

Product recall insurance is an endorsement you can add on toy our general liability insurance policy. This insurance is designed to help reimburse you in the event of a recall for a defective product that you’ve made or sold. Product recall insurance also covers your recall costs and provides risk management services to lessen the impact of the recall. 

Commercial general liability, or CGL insurance, is another way to refer to general liability insurance. Both help protect your business from claims that it caused a third-party bodily injury or property damage. 

A general aggregate for insurance is the maximum amount of money an insurance company will pay out for claims during your policy period. 

Comprehensive general liability is an outdated term that insurance companies used to refer to what is now known as general liability insurance. This insurance helps protect your company from liability that happens during your normal business operations. 

The main difference between general liability and professional liability is in the types of risks they cover. General liability insurance covers physical risks, such as bodily injuries and property damage, while professional liability insurance covers risks like errors and omissions in the services your business provides.

There is no difference between general liability and commercial general liability insurance definitions. Both terms refer to the same type of commercial liability insurance.

General liability insurance doesn’t cover every type of claim. Instead, you’ll need additional types of business insurance to make sure your business is fully covered from risks. General liability insurance doesn’t cover the following examples:

 

General liability insurance claims can come from normal business operations. Some examples of claims that this liability coverage can help cover are:

 

Yes, general liability insurance for contactors and construction business can help protect your business from claims that it caused bodily injuries or damage to someone else’s property.

Yes, you’ll need general liability insurance for cleaning services to keep your business financially protected against different liability risks.

Yes, general liability insurance for LLCs can help protect your company from unexpected claims that could come up during normal business operations. Without it, you’d have to pay out of pocket for costly claims. 

General liability insurance for startups is an important coverage for many small business owners. In fact, it's an essential insurance policy to help run a successful business. Without it, you would have to cover the costs of claims out of pocket.

Consider getting general liability if your business: