Worst case scenario? Bring it on. General Liability can help cover a wide range of risks.
Slip-and-fall injuries
Someone trips at your business, breaks their leg and files a lawsuit. Excluding employees.
Property damage
You accidentally damage a client or customer’s property.
Legal fees & defense costs
You need an attorney to defend your business in a lawsuit after a claim.
Medical payments
Someone (excluding employees) gets injured and asks you to pay for medical expenses.
Reputational harm
An employee bad-mouths a client online and the client sues you.
Advertising injury
You’re sued for improper image use in your advertising.
Learn more about General Liability for your small business:
What is General Liability insurance?
General liability insurance can provide financial protection for some of the most common accidents at a business.
It can help if someone other than an employee gets hurt and your business is at fault. This is called “bodily injury.”
General liability insurance coverage can also help pay for repair or replacement costs if you accidentally damage property that doesn't belong to you.
And if you’re accused of reputational harm (libel or slander), false advertising (advertising injury) or copyright infringement, your insurance policy can provide coverage for that, too.
It’s one of the most frequently purchased types of business insurance by small business owners because of the broad protection it offers.
This type of coverage is also sometimes called “business liability insurance,” “commercial general liability (CGL),” “public liability” or “liability insurance.” For the sake of simplicity, we’ll just call it general liability in the details below.
Who needs General Liability insurance?
General liability is included in many business insurance packages because it can help cover the risks that many small business owners face every day.
It’s not typically required by law, but some clients and agencies could ask you to have a certificate of insurance before they work with you.
Here are some examples of how different types of businesses are protected from liability risks with a general liability insurance policy:
Construction trades
Artisan contractors and other construction professionals are often required to have general liability to get professional licenses or work on certain jobs. That’s because there’s a risk of injury to other people and property damage in the work they do.
Restaurants and food service
Slip-and-fall accidents are a risk that food business owners worry about. General liability can help cover medical payments and lawsuit expenses. Some businesses can also add liquor liability or employer liability for more coverage.
Retail and e-commerce
Retail business owners can also benefit from the protection GL provides for customer injuries. NEXT policies also includes some protection for product liability coverage.
Fitness professionals
Personal trainers might need to be a policyholder for some professional certifications, and it can be required if they work at a gym.
Cleaning businesses
General liability can protect cleaners from financial losses if they accidentally break or damage property at a job.
If you want to rent commercial property you might also be required to have coverage as part of your commercial lease.
Learn more about general liability in these states:
We’ve already looked at some of the important protections business liability can offer after an accident.
Now, let’s look at some benefits it can provide in your day-to-day (hopefully accident-free) operations.
It can help you get more jobs
Having business liability insurance shows clients that your business is trustworthy and that you will take responsibility for your mistakes. That’s why some business owners advertise that they are insured.
It could give you a competitive advantage if a potential client has a choice between your business and another business that doesn’t have insurance.
Many larger clients also require coverage before they’ll sign a contract with you.
It keeps your business in compliance
Some states and cities will only give you a business permit if you have an active general liability insurance policy and a certificate of insurance.
You might be required to keep your insurance active if your business is certified or accredited by a professional organization.
Your commercial lease might require it
Property owners may ask to see your certificate of insurance if you plan to lease commercial space.
Business liability is often required because it shows you will have financial protection that can help cover expenses related to customer injuries at your leased space.
It lets you focus on growing your business
Business liability insurance can give you peace of mind.
You can have protection if a client trips and falls or you accidentally damage a customer's expensive property.
What does General Liability cover?
General liability insurance can help protect you from unexpected expenses related to many of the most common types of accidents that can affect your business and lead to lawsuits, such as:
Injuries to people who are not your employees (bodily injury)
Damage to another person’s property (property damage)
Court and legal fees
Medical payments
Advertising harm
Accusations of libel or slander (personal injury or reputational harm)
General liability can provide important financial protection for your business after an accident, but it usually doesn’t protect businesses from all the risks they face.
It's important to consider other types of coverage when exploring your business insurance options and deciding on your risk management plan. For example:
Most states require workers’ compensation if you have employees. It can help cover medical expenses and lost wages after an employee’s workplace accident.
We’ll walk you through the differences and similarities between General Liability insurance and other types of business insurance policies to help you make the best choice for your business.
If you don’t find the answers you’re looking for, our licensed insurance advisors are standing by to help.
Is General Liability insurance required by law?
General liability insurance is often the first type of coverage purchased by new business owners, but it’s not typically required by law.
However, some agencies might require coverage before issuing a professional license or permit. This is common in construction.
Clients might also ask for proof of insurance before they will work with you.
What is the difference between Professional Liability and General Liability?
This question comes up a lot. That’s why we wrote a detailed overview of general liability vs. professional liability.
Here’s a quick overview:
Professional liability insurance and general liability insurance offer similar benefits but there is one major difference — professional liability insurance can help cover professional mistakes and accusations of neglect. It's often related to advice you provide to a client or customer, not accidents in the workplace.
General liability insurance can provide financial protection for accidents that are more physical, such as property damage and injuries involving people who are not your employees.
General liability aggregate is a common insurance industry term you'll run into when exploring options for this coverage.
It's the maximum amount of money an insurance company will pay out during your policy period, which is usually one year.
If your business has expensive claims, you might hit your aggregate limit. In that case, you would be responsible for paying out of pocket to cover the remaining expenses.
Note that the aggregate limit is different from the “per occurrence” limit, which is the maximum amount your policy pays out per claim within the term of your policy.
For example, if you have a general aggregate liability limit of $300,000 and you’ve already made three claims in your policy term (usually a year) for $100,000 each, you’ve reached your aggregate limit and your insurance company won’t cover any additional claims.
It’s important to know your aggregate limit when you purchase general liability insurance. If you exceed your limit during your policy term, you will be responsible for paying for any expenses out of pocket that exceed the limit.
A business owner’s policy (BOP insurance) combines general liability insurance and commercial property insurance into one package that is usually less expensive than buying the coverage separately.
Does commercial General Liability insurance cover theft?
General liability insurance doesn’t cover the theft of your own possessions but it might cover the theft of customer property.
If you’re repairing a garage door for a homeowner and someone steals her bike while you’re out back, general liability could help pay for a replacement.
But if any of your personal or business items are stolen, you won’t be covered without additional insurance.
You can bundle tools & equipment insurance with your NEXT Insurance general liability coverage if you are a contractor or own a cleaning business.
Will General Liability protect me if my tools get stolen?
If you’re a contractor or own a cleaning business, tools & equipment insurance can protect your belongings if they are damaged or stolen.
General liability alone won’t provide tools and equipment coverage.
You might consider adding tools and equipment coverage if you work frequently at different locations because it will provide financial protection for your equipment wherever you go.
For example, if there’s a water leak at the new house you’re building and your power tools get soaked, your insurance could help pay for new tools.
Does General Liability insurance cover employee injuries?
General liability insurance can help pay for expenses if your business is accused of causing an injury, but injuries to you or your employee are not included.
Most states legally require you to purchase coverage as soon as you hire an employee. It also provides benefits for business owners if they get hurt on the job if they purchase optional business owner’s coverage..
General liability insurance premiums can typically be deducted from your taxes. It’s important to consult with a licensed accounting professional to make sure you qualify.
The IRS categorizes payments you make for this type of insurance to be both an “ordinary and necessary” business expense so be sure to keep a file of how much you pay every year for your policy.
How much General Liability insurance do I need?
Our small business insurance isn’t one-size-fits-all. Each business is unique and has different insurance needs.
The coverage you need depends on several factors, including:
The type of work you do
How many employees and subcontractors you have
The level of risk your company faces
The state where you work
When you complete an instant quote online with Next, you can review options and adjust limits to your preference.
When will I get my policy documents and proof of insurance?
With NEXT, it can take less than 10 minutes to purchase coverage and you’ll have instant access to policy documents and your certificate of insurance (COI).
You can access your documents and COI 24/7 online or in the NEXT app for iPhone or Android.
How do I make a General Liability insurance claim?
You can file a claim anytime and from anywhere online or in the NEXT app..
You’ll be asked to share the details of what happened and to provide relevant photos and documentation. We strive to make claims decisions within 48 hours so you can get back to focusing on your work.
How quickly are general liability claims resolved?
Often, claims decisions are made within 48 hours, although some claims require more time.
The specific details of the claim, how bad the damage is, how many people are involved, the availability of information and other factors all contribute to the decision process.
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Let’s find the coverage you need for your business
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
