General Liability Insurance protects your business from a number of different risks that could lead to a lawsuit. A general liability policy is the foundation of your risk management plan, and your business deserves to have one that is both robust and reasonably priced, as well as an agency that will be there for you every step of the way.

Work together with our licensed agents to protect your business from damaging lawsuits.

What Does a General Liability Policy Cover?

As the name says, this type of policy covers a business’s liability for a range of situations that can come up as you do business. Injuries to third parties, damage to property, or even damages from advertising are covered by your general liability policy.

For example, if someone trips coming through the door of a coffee shop, or slips on a recently-mopped floor in a restaurant, that fall could lead to an injury, possibly a serious one. This is a great example of a claim that would be covered under a general liability policy.

Let’s take another example of a contractor doing some renovation work on a home, accidentally cutting a water pipe, and flooding the hardwood floors before the shut-off valve can be found. The floors are ruined and have to be replaced. This is another example of a claim that would be covered by general liability insurance.

General liability also covers you for slander and libel, in case a competitor tries to sue you claiming that you unjustly harmed their reputation. Whether you feel that is accurate or not, you’d still end up fighting this in court, which can get very expensive, very quickly. Having a general liability policy that provides coverage for these fees can allow you to defend yourself in court without going bankrupt in the process.

What Does a General Liability policy not cover?

While General Liability policies are designed to provide a broad spectrum of coverage, there are many things not covered by this type of policy. Damages from auto accidents are not covered under a general liability policy. For this, you would need a business auto policy.

Damage to your own property, like tools and other equipment is also not covered under your general liability policy. For this, you need a Commercial Property policy. Likewise, Injuries to your employees would also not be covered by general liability, but instead fall under worker’s compensation.

Intentional acts or criminal acts committed by an employee are also not covered under a general liability policy.

Do I need a General Liability Policy?

In a word, yes. There are just too many sources of risk out there to be completely sure you will never face a liability claim. The comparatively low cost of the premium vastly outweighs the potentially devastating lawsuit that could force you out of business.

For some small businesses, instead of a separate general liability policy, a Business Owner’s Policy—commonly referred to as a BOP—includes general liability coverage along with several other coverages, like commercial property insurance, all in one policy.

If you advertise your business, do any type of work or service for clients, or have a location that clients or prospective clients come to, then liability protection is essential for your business.

How Much Liability Insurance Do I Need?

The Industry standard of $1,000,000 is a great place to start. While there are some policies out there with lower limits of liability, like $300,000 for example, they really are not much less expensive than a full million dollars of coverage. With high medical costs and inflation, damages can add up extremely quickly.

We personally work with all of our clients to help assess the needs of their business and match them with a policy that is the right fit. If it turns out that you need even more than a million dollars of coverage, then commercial umbrella policies are available as an easy and cost-effective way to enhance your protection.