General Liability Insurance Coverage
General liability insurance coverage provides essential protections for small businesses against a variety of claims, like bodily injury and property damage. Understanding exactly what it covers and determining how much coverage you need is key to confidently insuring your small business.
Work with our team of experts to start a quote and protect your company, assets, and reputation with general liability coverage.
Why is general liability coverage important?
General liability coverage is important because it helps protect your business from potential financial losses and lawsuits. It provides a safety net that allows you to invest in your company's security and longevity.
Most small businesses should consider commercial general liability coverage. It benefits a range of industries, including retailers, restaurants, consultants, and more. For example, contractors typically need some form of business general liability coverage to protect them from third-party claims, like customer injuries or faulty work.
What does general liability insurance cover?
Commercial general liability coverage protects businesses against a variety of common risks, including:
Bodily injury and property damage
General liability coverage helps when someone gets hurt in connection with your business. For instance, if a customer slips and falls on your property or an employee accidentally drops a tool on a visitor's foot, general liability insurance coverage will protect your business. It's important to note that this policy is specifically for non-employees.
It also safeguards against third-party property damage resulting from your operations. For example, a landscaper would be covered if their lawn mower kicks up a rock and breaks a client's window.
Products-completed operations
A business's products and completed operations are included in general liability insurance coverage. Products are any goods that your company produces, sells, or distributes. If a product causes physical injury or illness, like a customer getting sick from undercooked food, this coverage would help.
The completed operations portion of your general liability policy protects businesses from claims of faulty services or work. Coverage only applies once a project is finished. For example, a customer hires a plumber to install a shower drain during a bathroom renovation. The plumber doesn't seal the drain properly and the bathroom floods after they've finished the job. The plumber's general liability coverage would likely pay for the damages.
Personal and advertising injury
General liability coverage includes personal and advertising injury, which protects against harm caused by written or verbal communications. Some covered events under this policy are libel, slander, and copyright infringement. For example, you unknowingly use a copyrighted phrase in your latest ad campaign. A general liability policy could help cover the legal costs of settlements or judgments against you.
Medical payments
If your business is at fault for an accident, medical payments coverage can help with medical or funeral expenses for non-employees. Your policy limits determine the maximum amount your insurance will pay. For instance, a shelf falls on a customer and they're left with $10,000 in medical expenses. The store's general liability coverage is limited to $5,000 toward medical payments. In this case, the business would be responsible for paying the remaining balance out of pocket.
Damage to rented properties
Commercial general liability coverage can pay for damage to property you do not own, but only if your business is liable. For example, your restaurant causes a fire in the building you rent. Your insurance could cover necessary repairs because you were at fault for the accident. However, a fire started by lightning or another natural disaster wouldn't be covered.
What general liability doesn’t cover
While general liability insurance coverage is beneficial, it may not address all your insurance needs. Progressive Commercial offers a full range of insurance products to make sure you're getting the right coverage for your business. Consider protection for the following:
- Owned commercial property: Your commercial property, including equipment and goods, would be protected with a business owners policy (BOP).
- Employee injuries: Workers’ compensation supports employees in the event of job-related injuries or illnesses. Required by law in most states, it covers medical expenses and a portion of lost wages.
- Professional mistakes: Businesses offering services or advice should have professional liability insurance. It protects you when work doesn't meet a client's expectations or causes them financial loss.
- Commercial vehicles: Companies that use vehicles should consider commercial auto insurance to protect against accidents on the road. This coverage is important because personal auto policies typically don’t cover business vehicles.
General liability also won't cover intentional illegal acts or wrongdoing. Its primary purpose is to protect against accidental or unintentional incidents.
Need coverage for a high-risk business?
High-risk businesses might need to get general liability coverage through the excess and surplus lines (E&S) market. E&S insurance typically offers greater liability limits and more flexible coverage for professions like general contractors, arborists, tree trimmers, and roofers.
How much general liability coverage do you need?
Your risk exposure determines how much commercial general liability coverage you need. Insurance companies consider various features of your small business, including:
- Profession
- Location
- Business activities
- Time in business
- Number of employees
- Prior claims
Contractual requirements can also impact the amount of general liability insurance coverage you need. Certain employers or clients may ask that you carry specific limits before you start working. For example, many contracts require a $1 million per occurrence policy. This means your insurance will cover up to $1 million for a single covered incident.
Why choose general liability coverage from Progressive Commercial?
Progressive Commercial offers a full range of insurance products, great rates, and first-class service. For over 50 years, small businesses have trusted us to provide the protection they need at a price they can afford.
Whether you're looking for general liability insurance or a combination of coverages, our specialists are here to help you find the protection you're looking for.
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