Comprehensive general liability insurance
Learn more about critical insurance coverage for common business accidents.
Table of contents:
- What is comprehensive general liability insurance?
- What does comprehensive general liability insurance cover?
- How much does comprehensive general liability insurance cost?
- Other liability coverage to consider
- How NEXT helps small business owners get general liability insurance
What is comprehensive general liability insurance?
Comprehensive general liability insurance is an outdated term for general liability insurance.
Most insurance companies dropped “comprehensive” from the name of this type of coverage. General liability can provide financial protection from many different risks, but it isn’t exactly comprehensive when it comes to business insurance.
You might need other types of coverage for a more “comprehensive” insurance package, including professional liability insurance (E&O), workers’ compensation or commercial auto.
What does comprehensive general liability insurance cover?
Comprehensive general liability insurance can help cover claims if you or your employees are held responsible for causing an injury to a non-employee or damage to property that does not belong to your business.
Some examples of claims general liability insurance coverage can help with are:
Property damage
You accidentally knock over a valuable vase while working in a client’s house.
Slip-and-fall injuries
A client slips on a wet floor at your business and breaks their arm.
Reputational harm
An employee insults a competitor online and the competitor decides to sue you. This is sometimes called personal and advertising injury.
Advertising injury
You accidentally use a photographer’s picture in an ad without permission and they sue for damages.
Medical payments
Someone (not an employee) gets injured at your business and asks you to pay for their medical expenses.
Liability insurance can help when you are not at fault
The biggest thing to keep in mind is that your business doesn’t have to be responsible for these accidents to be accused.
Comprehensive general liability can help with legal fees and defense costs to defend your business after a claim is made, regardless of fault.
How much does comprehensive general liability insurance cost?
The cost of comprehensive general liability insurance differs for every business. The main factors that will determine your costs are:
Your industry
Simply put, high-risk industries could have higher premiums and lower-risk industries have lower premiums.
Your number of employees
The more people you need to cover, the more your insurance usually costs.
Where you do business
Different states have different insurance requirements. Insurance could cost more if you work in an area with more exposure to weather-related risks or property crimes.
Your claims history
Just like with auto insurance, your past insurance and claims history can impact how much you’ll pay today.
Your work experience
New businesses might pay more than established businesses that have a track record of safety and few claims.
Your deductible
A deductible is how much you have to pay before your insurance will kick in. Higher deductibles generally lead to lower premiums.
Policy limits
The amount of coverage you want will impact how much you pay. The higher you make your per-claim and aggregate limits, the more your policy will cost.
Other liability coverage to consider
If your business is looking for truly comprehensive commercial coverage, some other insurance policies you might consider are:
Professional liability insurance
If you make a business error or are accused of negligence that costs a client money, professional liability (also known as errors and omissions insurance) can help cover legal defense costs and damages.
Commercial property insurance
Commercial property insurance can help protect the physical assets you need to do business, including inventory, equipment and structures, if they are damaged by fire, water, wind or another covered event.
Workers’ compensation insurance
Workers’ comp can help with coverage for medical bills and lost wages if an employee is injured on the job.
Commercial auto insurance
Commercial auto can provide coverage for on-the-job accidents that your personal auto policy would leave out.
Liquor liability coverage
If you serve alcohol at your business, it’s important to know that general liability usually won’t provide coverage for alcohol-related accidents. That’s what liquor liability insurance is there for.
Employment practices liability insurance (EPLI)
Employment practices liability insurance (EPLI) can help provide coverage for lawsuits involving discrimination, harassment and wrongful termination.
How NEXT helps small business owners get general liability insurance
There is no one insurance policy that will cover your business comprehensively, that’s why NEXT makes it easy to add exactly the coverage you need, 24/7.
Boost your coverage, add additional insureds and get instant access to your new certificate of insurance any time you need it online or in our app.
You can start a quote, customize your options and access your certificate of insurance online in about 10 minutes.
