Ultimate Guide to General Liability Insurance


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General Liability Insurance, also called business Liability Insurance or Commercial General Liability Insurance, is perhaps the most basic type of business insurance, and every business owner should carry it.

In this Ultimate Guide, we break down General Liability Insurance. We explain what it is, why you should insure your business, how it can protect you, and recommend where to look for competitively priced insurance.

What is General Liability Insurance?

While General Liability Insurance is not required by law, it is definitely one of the insurance policies every business should strongly consider. It protects you and your business should someone—a client, customer, vendor, etc.—sustain an injury on your business property or from using your products or services.

A General Liability Insurance policy is a stand-alone insurance product, but it can also come bundled in a Business Owner's Policy (BOP).

What Does General Liability Insurance Cover?

General Liability Insurance helps cover the cost of legal fees, settlements, damages, and medical expenses resulting from a personal injury or property damage caused by your company's products, services, or operation.

Moreover, General Liability covers you if someone sues you for advertising injury, such as copyright infringement. General Liability might cover damages to your landlord’s property as well. Ask your agent if your policy covers your business for these instances.

What Doesn't General Liability Insurance Cover?

General Liability Insurance does not cover intentional acts, professional mistakes, employee injuries, punitive damages, or auto accidents. These types of liabilities are covered by other business insurance products like Workers' Compensation, Commercial Vehicle, or Professional Liability insurance, to name a few.

What's a Situation You Would Need General Liability Insurance?

Here are a few examples of when a company was protected from monetary damages and excessive legal fees by their General Liability insurance:

  • A contractor was sued for $200,000 when one of his workers accidentally flooded the basement of a house they were remodeling.
  • A restaurant was sued for $100,000 by a produce delivery man who slipped on a wet floor and broke his leg.
  • A photographer was sued for $75,000 when a client tripped over a cord in her studio and broke his collarbone.

How Much is General Liability Insurance?

The price of General Liability Insurance varies based on the amount of coverage, the business location, the business industry, payroll (or gross sales), and other factors. Typically, it will cost your business anywhere from $30 to $200 per month.

Where Can You Get General Liability Insurance?

General Liability Insurance is available from numerous insurance providers —brick and mortar as well as online. We've partnered with Next Insurance and their rates start at just $25 per month. Use our partner link to get a free quote.

Learn more about 12 other types of insurance. Take a look at our Ultimate Guide to Selecting Business Insurance.

How Else Can Skip Help? Whether you need assistance navigating funding for your small business — like SBA loans, grants, or other financing options, or guidance with government-related services — like TSA PreCheck or DMV appointments, we’re ready to help. Become a member and skip the red tape.

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