General Liability Business Insurance
Commercial General Liability Insurance for Small Businesses
What is General Liability Insurance?
General Liability insurance, also referred to as Commercial General Liability insurance or business liability insurance, is the most fundamental insurance coverage a business can purchase. It protects a business against the risk of unintentional accidents, which include bodily injury and property damage to a third party.
Here’s an example of bodily injury that would be covered by General Liability insurance:
You are working at a client’s property and you leave your tool box on the floor. As they are leaving, the client trips over your tool box and injures themselves.
And here’s an example of property damage that would be covered:
You are meeting in a client’s office. While walking towards them, you trip over a cord and knock over an expensive lamp. The client wants you to reimburse her for the cost of the lamp.
If you do not have General Liability insurance, these claims could be very costly. Purchasing general liability insurance can give you the peace of mind you need to stay focused on building your business.
Why Do I Need General Liability Insurance?
Unfortunately, we live in a world in which lawsuits have become a daily occurrence. General Liability insurance protects you from litigious third parties who may be quick to sue for accidents that fall outside of your control. Think of it this way: the cost of insurance is negligible in comparison to the cost of defending yourself in court.
Some companies require that their workers carry General Liability insurance. You should consider purchasing General Liability insurance coverage if you work with clients on a face-to-face basis – at a client’s place of work, at your own place of work, or at a third-party location.
Accidents and injuries can happen on the job even when we have taken great care to avoid them. Bodily injury is the portion of the General Liability policy that covers claims for physical injury to a third party.
ex. You are working at a client’s property and you leave your tool box on the floor. As they are leaving, the client trips over your tool box and injures themselves.
General Liability insurance also offers coverage for damages to another person’s or business’ property.
ex. You are meeting in a client’s office. While walking towards them, you trip over a cord and knock over an expensive lamp. The client wants you to reimburse her for the cost of the lamp.
What Does General Liability Insurance Cover?
- Bodily Injury
- Medical Expenses
- Defense Costs
- Damage to Third-Party Property
What's Not Covered?
- Your Property
- Professional Services
- Employee Injury
- Vehicles and Boats
- Intent to Injure
- Workers Compensation
- Personal Identifiable Information
- Coverage Outside Policy Period
- Known Claims Prior to Start of Policy
What is the Cost of General Liability Insurance?
The cost of your General Liability insurance coverage will vary based on a number of factors, most notably your industry and your ZIP Code. Your industry determines your risk exposure, as some jobs come with a higher probability of accidents involving bodily injury or property damage. Your ZIP Code also affects the cost of your insurance policy, as premiums can vary significantly from state to state or even between rural and metropolitan areas in one geographic region.