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General Liability Insurance

As a business owner, you must do everything possible to protect your investments. One of the most impactful ways to protect your business financially is by having general liability insurance. General liability insurance is a policy that helps protect businesses from third-party liability and/or property damage claims. Without general liability insurance, a business may have to pay for costly claims out of pocket.

What General Liability Insurance Covers

General liability insurance typically includes the following four coverages:

Third-party bodily injury coverage may help pay for medical bills if someone is injured in your place of business.
Product liability coverage can help pay for costs associated with selling a product that injures a customer or causes damage to their property.
Third-party property damage coverage may help pay for expenses if you or your employee damages someone else’s property.
Libel, slander, copyright and advertising injury coverage may help cover defense costs if you are sued for harming a third party’s reputation or making false claims.

When Is General Liability Insurance Required?

A business is not legally required to have general liability insurance, but it is recommended, especially if any of the following is true:

Your business is open to the public.
You visit, work on or work near your client’s property.
Your business has marketing or advertising collateral.
You use social media for professional reasons.

How Much General Liability Insurance Do I Need?

The amount of general liability insurance coverage you need depends on a variety of factors, such as the following:

Type of business
Size of your business
Location of the business
Number of employees
Experience level of your employees

Essentially, the more potential risks your business has, the more coverage you may need.