What is General Liability insurance?
What can General Liability insurance cover?
- Slip-and-fall injuries
- Property damage
- Legal fees & defense costs
- Medical payments
- Other common business accidents
What does General Liability insurance cost?
Starting at $19/month† for some low-risk businesses
Buy online in about 10 minutes, and cancel anytime.
Who needs General Liability coverage most?
- Brick-and-mortar shops & offices
- Businesses visited by customers or vendors
- Anyone working at other people’s property
- Owners who bid on contract jobs
- Professionals who require licenses and permits
Commercial General Liability insurance for business owners can help cover a range of business risks
Property damage caused by you or your employees
You accidentally damage client or customer property while working and your business is asked to pay.**
Medical payments for injured customers
Someone (excluding employees) gets injured on business premises and asks you to pay for medical expenses.
Liability for injuries at your business
A non-employee trips at your business, breaks their leg and files a lawsuit.
Legal fees and defense costs
You need an attorney to defend your business in a lawsuit after a claim.
Libel or slander claims
An employee bad-mouths a client online and the client sues you for libel.
Personal and advertising injury lawsuits
Your business is sued for improper image use in your advertising.
What is General Liability insurance coverage?
Small business general liability coverage can help protect your business from some of the costs of working with the public. It’s best known for helping to cover the costs of non-employees who get hurt at your place of business or job site, and for its help to cover costs if your employees (or you) damage property that does not belong to you while you’re working.
General liability insurance coverage can also be called small business liability coverage, commercial general liability insurance and comprehensive general liability (CGL) insurance.
For many small business owners, general liability coverage is often the first type of business insurance they buy, and in many instances it’s a required coverage. It may be mandatory to get a professional license, sign a commercial lease or to land a job. Even if it’s not required, it’s often recommended as a base layer of protection to help shield your business from the cost of many business risks.
Is General Liability insurance for business owners required by law?
General liability insurance may not be required by law, but it is often necessary to launch, grow and sustain your business.
For example, depending on your profession and your location:
- Some professional organizations might require coverage before issuing a license or permit. Without compliance for licensing, a business could face significant financial penalties and loss of work.
- Many commercial landlords require general liability coverage before they’ll sign a lease with you. Lessors often want their commercial tenants to help share the liability of incidents that take place in their storefronts, offices and warehouses.
- Clients or vendors might also ask for proof of insurance before they’ll work with you. If your business is focused on growth, know that larger enterprises, government agencies and municipalities often request a certificate of general liability insurance (also called a COI, or proof of insurance) before they’ll allow you to bid or sign a contract.
How much does General Liability insurance cost?
General liability insurance costs can be as little as $19 monthly† for some low-risk businesses.
Several factors influence the price you’ll pay for insurance, including:
- Your industry
- Your business operations
- The size of your business
- Where you do business
- Your business needs and how much coverage you choose
- Policy limits
How do I get General Liability insurance?
Tell us about your business
In about 10 minutes you’ll see the exact price you’ll pay for business general liability and other policies.
Customize your coverage
Adjust your limits and deductibles to pick the right coverage at the right price.
Buy 100% online
Your coverage is effective immediately after payment. And your certificate of insurance is ready at no extra cost.
Which types of businesses need small business General Liability coverage most?
Restaurants, caterers, coffee shops and food vendors
Restaurants and other food service businesses could get help with medical payments and lawsuit expenses if, say, there’s a customer slip-and-fall at your business. Liquor liability insurance, an optional add-on to general liability for food businesses, could also help protect your business from some liability if you serve alcohol.
Construction and contractors
General contractors and other construction professionals are often required to have general commercial liability insurance for licensing or to work on some contracts. At ERGO NEXT, general liability insurance trades can also include optional tools and equipment insurance to help with the cost of stolen or damaged tools when you’re working on-site.
Retail and e-commerce
Retail and online business owners could benefit from the protection general liability coverage could provide for customer injuries in your store or with your products. If you work in retail or online retail, ERGO NEXT general liability policies can also include product liability insurance, meaning you could get help if the products you make or sell cause injury or damages.
Offices and professional services
Though your work may be a desk and a computer, if you see clients, you’re still vulnerable to injury claims and property damage risks. Professionals such as accountants, real estate agents, consultants, architects and engineers — even if you work alone — may need general liability. And cyber liability insurance, an optional add-on, could help cover the costs of data leaks, phishing scams, wire fraud, ransomware attacks and more.
Sports and fitness professionals
Fitness insurance could be required for professional certifications for personal trainers, fitness instructors or yoga teachers. It can also be required to work at a gym. ERGO NEXT has commercial umbrella insurance to expand the coverage and limits of your general liability policy if it’s required for your professional or business growth.
Janitorial and cleaning businesses
Commercial cleaners and house cleaners can get protection from financial losses if they accidentally break or damage someone’s property while on the job. General liability could help you cover costs surrounding scratched floors, broken vases, or cost liability around a non-employee slipping on a freshly-mopped floor.
General Liability coverage cost calculator
See an estimate for your profession, then get a detailed general liability insurance quote on the exact price for your business.
General Liability insurance FAQ
Get answers to some of the most common questions around general liability insurance coverage.
How much General Liability insurance coverage do I need?
Small business insurance isn’t one-size-fits-all. Every business is unique and has different business liability insurance needs based on coverage requirements and its level of risk. And the risk level for your business is based on numerous factors, including the type of work that you do and where you do it.
The specific coverage you’ll need for your business depends on things like:
- Your profession and how much you interact with the public.
- Your business operations, including the tools you work with, your level of physical risk and liability.
- How many employees and subcontractors you have.
- Your payroll and annual revenue.
- The region, state and city where you work.
- Cars, trucks, trailers or other vehicles you use for work.
When you get a free online quote with ERGO NEXT Insurance, you can review your liability coverage options and adjust your policy and limits to fit your budget.
Learn more about how much general liability insurance coverage you need.
Can small business liability coverage cover property damage?
General business liability insurance could help cover expenses related to property damage, but only to property that does not belong to you.
For business owners who want coverage to help protect their own business property, commercial property insurance is usually the answer. This other type of business insurance could help protect the physical items you own to operate your business, such as:
- Your business inventory and products.
- The business equipment you use to get work done, such as laptops, POS systems and other office machinery.
- Furniture and furnishings, such as desks and lighting and flooring.
- Parts of your physical building structure, including HVAC systems and broken windows or doors.
BOP insurance (Business Owner’s Policy) combines general liability insurance and commercial property insurance into one package that is usually less expensive than buying both coverages separately.
Learn more about how general liability coverage can help with property damage.
Does commercial General Liability insurance cover theft?
General liability insurance coverage won’t cover theft of your own possessions.
If any of your business items are stolen, you won’t be covered without additional insurance to protect your own gear, such as commercial property insurance or tools and equipment insurance.
If you work in construction or as a contractor, you might consider adding tools and equipment coverage to your ERGO NEXT general liability policy if you work in multiple locations. It can help provide financial protection for your equipment in transit and on a job site.
Does commercial General Liability insurance cover employee injuries?
Business general liability insurance can help pay for expenses if your business is accused of causing an injury to a customer, vendor, passer-by or another non-employee, but injuries to you or your employee are not covered.
Workers’ compensation insurance is another type of small business insurance, often required in most states if you have employees, that can help pay for medical expenses and lost wages if an employee is hurt on the job. Optional business owner’s coverage is an add-on to workers’ comp that can help provide benefits for business owners if they get hurt on the job.
Do LLCs need General Liability insurance?
An LLC is a type of business structure that legally separates your business assets from your personal finances. Think of an LLC as a wall between your business liability and your personal liability. It’s designed to help protect your personal assets from being negatively affected if someone sues your business.
General liability insurance for LLCs (also known as a limited liability company) is not always legally required just because you’ve registered your business as an LLC. But this important business liability coverage could help to provide financial protection of your business assets if an accident occurs at your business, such as an injury to a non-employee, or you or your employee accidentally damage someone else’s property.
Does a home-based business need General Liability insurance?
If you run your business from your home, your homeowners insurance probably won’t protect your business. General liability insurance for home businesses could help you if a non-employee, such as a client or a delivery person, gets hurt at your business. Commercial liability coverage could also help if your business accidentally causes property damage to someone else’s stuff while you’re working.
For example, if a client visits your home office and trips over loose carpeting and injures themselves, or you accidentally break a customer’s window while working offsite, home business liability insurance may help cover medical expenses, repair costs and legal fees.
In addition, product liability coverage, included as a part of general liability, could help protect retail businesses that manufacture or sell physical products if a customer claims a product caused injury or damage.
What’s typically not covered by commercial General Liability insurance?
General liability offers small business owners a lot of protection, but it’s just one type of business insurance out of many. Here’s what general liability insurance probably won’t cover:
Property that you own
Business liability insurance could cover accidental damage costs to property that you don’t own. But if you want to help shield your business from the costs of your own property getting damaged, look into commercial property insurance.
Injury costs for you or your employees
If a non-employee gets hurt at your place of business or job site, small business general liability could help cover the medical costs. But to cover your employees or yourself in the event of a work-related illness or injury, you’ll need workers’ compensation insurance. Note that workers’ comp is required coverage for businesses that have employees in most states.
Legal costs for professional mistakes
If you’re a professional who sells your services — such as a consultant, financial advisor, engineer or real estate professional — professional liability insurance (also called errors and omissions insurance, or E&O) could help. This type of liability insurance is different from general liability. This coverage could help cover costs if a professional error, miscalculation or missed deadline costs a client money.
Cars, trucks, trailers, or other vehicles you use for business driving
Commercial auto insurance could help protect your business from the unexpected cost of vehicle repair, replacement or rental if you or your employees are involved in a covered accident or incident.
Computer system hacks and cyber attacks
Cyber protection coverage could help cover financial losses to your business from cyber attacks, phishing schemes, data breaches or ransomware. At ERGO NEXT Insurance, cyber liability insurance is an optional add-on to your general liability coverage or professional liability insurance.
Is General Liability insurance coverage tax deductible?
General liability insurance coverage premiums can typically be deducted from your small business taxes. 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. Just be sure to keep a record of how much you pay every year for your policy.
When will I get my policy and a certificate of General Liability insurance (COI)?
It only takes about 10 minutes to get general liability coverage online with ERGO NEXT.
Answer a couple of questions about your business to get a free general liability insurance quote specific to your business. You’ll choose your coverage, adjust the limits to fit your budget, and then buy coverage 100% online — no agent required.
Your small business liability coverage is effective immediately after payment. And your shareable, unlimited certificates of insurance (COIs) as proof of your general liability policy are available at no extra cost.
You’ll have immediate 24/7 online access to all of your policy documents online or on the ERGO NEXT Insurance app for iPhone or Android.
How do I make a business General Liability coverage claim?
You can file a claim on your general liability insurance policy anytime through your online account or in the ERGO NEXT Insurance 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 as quickly as possible so that you can get back to work.
Compare General Liability insurance to other business insurance policies
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