General Liability insurance — often called "GL" — is the most commonly required commercial insurance policy. It protects your business from financial loss arising from claims of bodily injury, property damage, and personal or advertising injury caused by your business operations, products, or employees.
What Does General Liability Cover?
Third-Party Bodily Injury: If a customer, vendor, or visitor is injured on your premises or because of your business operations, GL covers the resulting medical costs and any legal defense or settlement expenses.
Third-Party Property Damage: If your business activities damage someone else's property — for example, a contractor accidentally damages a client's flooring — GL covers the cost to repair or replace it.
Personal and Advertising Injury: This includes claims of libel, slander, copyright infringement, or wrongful eviction arising from your advertising activities.
Products and Completed Operations: Coverage for injury or damage caused by products your business manufactures, sells, or distributes — as well as work you have already completed.
Medical Payments: Pays for medical expenses for third parties injured on your premises, regardless of fault.
What General Liability Does NOT Cover
GL is broad, but it has important exclusions:
- Employee injuries — those are covered under Workers Compensation
- Professional errors — those are covered under Professional Liability (E&O)
- Your own property — that requires Commercial Property insurance
- Intentional acts
- Auto accidents involving business vehicles
Who Needs General Liability Insurance?
Nearly every commercial business needs GL coverage. It is required by most commercial leases, client contracts, licensing agencies, and government contracts. Without it, a single lawsuit could financially devastate an otherwise healthy business.
Contractors, retailers, restaurants, professional offices, service businesses, and property owners all typically carry GL as the foundation of their insurance program.
How Much Coverage Do You Need?
Most businesses carry limits of $1,000,000 per occurrence and $2,000,000 aggregate. However, contract requirements, industry exposures, and business size all influence the appropriate limit for your specific situation.
Work With Capital & Co
If you are evaluating General Liability options for your business, Capital & Co Insurance Services can help you compare carrier options, review coverage terms, and ensure your policy is structured correctly for your operations.
Questions About Your Coverage?
Speak with Capital & Co about a strategy built for your business.
