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Compare General Liability Insurance Rates
Learn more about the factors that dictate your general liability insurance rates, compare top insurers, and save.
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WHAT IS GENERAL LIABILITY INSURANCE?
General Liability (GL) Insurance helps protect you from claims that happen as a result of normal business operations. GL includes claims for third-party bodily injuries, resulting medical payments, and advertising injuries. General liability is also known as "Business Liability Insurance," or "Commercial General Liability" (CGL) insurance.
When do businesses need general liability insurance?
Almost every business needs some form of general liability insurance to protect company assets and sign important contracts. Commercial general liability can help small businesses pay for unexpected lawsuits, sign deals with new clients, rent commercial space, and avoid bankruptcy.
What does general liability insurance cover?
Protect your business from liability claims
General liability insurance (GL), often referred to as business liability insurance, is coverage that can protect you from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations. General liability insurance quotes usually include:
• Bodily injury and property damage liability
• Personal and advertising injury
• Medical payments
• Defense costs
Who needs general liability insurance?
General liability insurance is often combined with property insurance in a Business Owners Policy (BOP), but it's also available to many contractors as a stand-alone coverage As a contractor or small business owner, you need some form of business liability insurance to safeguard your livelihood. A single accident could result in a lawsuit that you might not be able to handle. A great way to protect against this is to make sure you have liability coverage that matches your level of exposure.
General liability insurance for contractors
If you're a contractor, you might only want general liability - not a full BOP. For example, you might not own any commercial buildings that require property insurance, or need to cover payroll or other operating expenses. However, you're still exposed to liability risks from your job. Blanket Additional Insured Coverage extends your existing liability insurance to other entities as required by some contracts with employers.
We offer general liability, as well as Blanket Additional Insured Coverage to contractors who qualify.
Businesses that purchase a general liability policy typically:
- Have a location that is open to the public
- Interact with people on a job site
- Handle client property
- Rent business space
- Sell products to customers
- Advertise or market their services
- Use social media and have an internet presence
- General contractors
- Landscaping companies
- IT contractors
- Real estate agents
- Consulting
- Marketing and more
Is product liability insurance required by law?
No, but failing to carry general liability insurance could result in you having to pay for all the expenses related to a claim against your business. For example, while visiting your office a client slips on a rug and breaks their hip. Without general liability insurance, you could be solely responsible for all the medical bills and legal fees. So, even though it’s not required by law, it should be a priority for your business.
Does general liability insurance have a deductible?
Yes. You choose the amount of your general liability deductible when you get a quote. A deductible is a fixed out-of-pocket expense you agree to pay before your coverage starts to pay
Does general liability insurance cover theft?
General liability insurance only pays for third-party damages, not yours. You’re considered the “first-party”. The “third-party” is the one that has a claim against you. This means general liability won’t cover your property or equipment against theft or damage.
Is general liability insurance tax deductible?
Yes. Since general liability premiums are considered “a cost of doing business”, they usually can be written-off at tax time. That said, it’s a good idea to consult a tax professional to make sure.
Does general liability cover professional mistakes?
No. General liability only provides coverage for claims against you by others for their bodily injuries or damage to their property. To protect from claims against you for professional neglect or mistakes, you need to have professional liability insurance.
What is a certificate of insurance?
A certificate of insurance (COI) is an official document that lists all coverages and limits on an insurance policy. Essentially, it proves that you have insurance and details your policy coverages and limits.
General liability insurance examples
Liability protection
Contractor
You may need general liability to pay for business-related bodily injury and property damage lawsuits.
Contractor
A client may ask you to provide a certificate of insurance in case you damage equipment.
Small business
You sign a commercial lease and your landlord requires general liability insurance.
Advertising injury protection
Home business
You launch a website and want protection for slander, libel, and accidental copyright infringement.
Contractor
You want protection in case someone involved with a project accuses you of libel or slander.
Small business
You launch your first advertising campaign and want protection against advertising injury lawsuits
What do these insurance terms mean?
Property Damage
Could include claims costs if you damage someone else's property.
Medical Payments
Medical payments resulting from accidents that occur on your premises or because of your operations, regardless of fault. This could include if a customer slips on a wet floor.
Personal & Advertising Injury
If you're sued for libel and slander, this could provide coverage for those claims.
How do I get a certificate of general liability insurance?
Some providers take weeks to mail a certificate of insurance. That’s a big problem for a contractor who needs immediate proof of insurance, with Goods Insured, you can often download a certificate on the same day that you apply for insurance and purchase a policy.
General liability insurance cost
Several factors affect general liability insurance cost, including:
- Industry and risk factors
- Coverage limits
- Location
- Number of employees
Constructing and contracting businesses, cleaning services, and landscaping businesses have the highest general liability costs because these industries often do work that involves someone else’s property. General liability policies can pay for damage you or your employees cause to someone’s property.
How coverage limits affect general liability insurance costs
If you want car insurance that pays for a wide range of damage, you have to pay more for it. The same rule applies to business insurance. If you want a policy with higher coverage limits, expect to pay more than you would for basic coverage.
The most popular general liability policy is the $1 million / $2 million policy. This includes:
• $1 million occurrence limit. While the policy is active, the insurer will pay up to $1 million to cover any single claim.
• $2 million aggregate limit. During the lifetime of a policy (usually one year), the insurer will pay up to $2 million to cover claims.
The majority of Business customers (92%) choose a policy with $1 million / $2 million limits. Five percent of our customers choose a policy with $2 million / $4 million limits, the next most popular choice.