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General Liability Insurance
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What is general liability insurance?

General liability insurance, also known as commercial general liability (CGL) insurance, is a type of insurance policy that provides coverage for a broad range of liabilities faced by businesses. It is designed to protect businesses from financial losses resulting from claims or lawsuits filed by third parties for bodily injury, property damage, personal injury, or advertising injury.

What does general liability insurance cover?

General liability insurance provides coverage for a wide range of liabilities that businesses may face. Here are some common areas that general liability insurance covers:

Bodily Injury: If someone is injured on your business premises or as a result of your business operations, general liability insurances can cover medical expenses, legal fees, and damages associated with the injury.

Property Damage: If your business causes damage to someone else’s property, such as a client’s office or a rented workspace, general liability insurances can cover the costs of repairs or replacement.


Personal and Advertising Injury: This includes non-physical harm caused by your business, such as libel, slander, false arrest, or copyright infringement. General liability insurance can cover legal defense costs and any damages awarded to the injured party.

Completed Operations: If your business provides services or produces products, general liability insurances can cover claims arising from defects, errors, or omissions that result in bodily injury or property damage after the completion of your work.

Products Liability: If your business manufactures, sells, or distributes products, general liability insurances can protect against claims arising from product defects or failures that cause bodily injury or property damage.

Legal Defense Costs: General liability insurances can help cover the costs of hiring a lawyer, court fees, and other legal expenses associated with defending your business against a claim or lawsuit, even if the claim is groundless.

How much is general liability insurance?

General Liability Insurance can depend on several factors. Here are some factors that can influence the cost of general liability insurances:

Business Size and Industry: The size and nature of your business play a significant role in determining the cost. Different industries have different levels of risk, and businesses with higher risk factors may have higher premiums.

Revenue and Payroll: Insurance companies may consider your business’s revenue and payroll as indicators of its size and exposure to potential claims. Generally, higher revenue and larger payrolls may result in higher premiums.

Coverage Limits: The coverage limits you choose for your general liability insurances policy can impact the cost..

Deductible Amount: The deductible is the amount you agree to pay out of pocket before your insurance coverage kicks in. Choosing a higher deductible can lower your premium, but it also means you will be responsible for paying a higher amount in the event of a claim.

Claims History: Your business’s claims history can affect the cost of insurances. If you have a history of frequent or high-value claims, insurance companies may view your business as higher risk and charge higher premiums.

Location: The geographic location of your business can also influence the cost. Factors such as local regulations, legal environment, and the prevalence of lawsuits in your area can impact insurance rates.

Who needs general liability insurance coverage?

General liability insurance coverage is important for various types of businesses and professionals. Here are some examples of who typically needs general liability insurances:

Small Businesses: Small businesses, including sole proprietors, partnerships, and LLCs, often need general liability insurance to protect against common risks. This can include retail stores, restaurants, contractors, consultants, freelancers, and service providers.

Contractors and Construction Professionals: General liability insurance is crucial for contractors, builders, electricians, plumbers, and other professionals working in the construction industry. It helps protect against potential property damage or bodily injury claims that may arise during construction projects.

Retailers and Store Owners: Businesses with physical storefronts, such as retail stores, boutiques, and grocery stores, should have general liability insurances to cover potential slip and fall accidents or injuries that may occur on their premises.

Service-Based Businesses: Professionals who provide services, such as consultants, accountants, architects, engineers, and IT specialists, should consider general liability insurances. It protects against claims arising from errors, omissions, or negligence in their professional services.

Medical and Healthcare Professionals: Doctors, dentists, chiropractors, therapists, and other healthcare professionals can benefit from general liability insurances to cover claims related to bodily injury, property damage, or allegations of malpractice.

Event Organizers: Individuals or companies organizing events, conferences, or trade shows should have general liability insurance to protect against potential accidents, property damage, or injuries that may occur during the event.

Landlords: Property owners and landlords should consider general liability insurances to protect against claims related to accidents or injuries that occur on their properties. It can help cover legal expenses and damages if a tenant or visitor sues for bodily injury or property damage.