General Liability Insurance: Protect Your Business Today

With today’s legal issues, one mishap could cost your business a lot. This might be a customer getting hurt on your property or a mistake in an ad. General liability insurance steps in to help. It protects your business from the costs of lawsuits and claims by others.

Called commercial liability coverage, general liability insurance shields you from third-party injury claims, property damage, the cost of legal defense, and more. Anyone from contractors to consultants, and real estate agents to landlords, should consider this business insurance. It’s a key piece to lower risks and secure your business’s future.

Key Takeaways

  • General liability insurance protects against third-party claims, including bodily injury, property damage, and advertising liability.
  • It covers legal defense costs and settlements or judgments if your business is found liable.
  • Common professions that need general liability insurance include contractors, consultants, real estate agents, and landlords.
  • This type of business insurance is essential for mitigating risks and ensuring long-term success.

Understanding General Liability Insurance

General liability insurance is like a safety net for businesses. It covers injury claims from people not in the business, damage to property, and costs for legal defense. This insurance is key for companies to avoid heavy financial losses from accidents or mistakes.

What is General Liability Insurance?

This type of insurance protects businesses from various risks. It covers injuries, claims about false adverts, issues with products, and faults in completed work. So, it protects companies from many types of lawsuits linked to what they do or offer.

Who Needs General Liability Insurance?

If you run a business that involves clients or sells products, you likely need this insurance. It’s important for consultants, contractors, real estate agents, and others in similar fields. Even landlords should consider it due to the risks of property ownership.

General Liability Insurance for Contractors

Contractors often need comprehensive general liability insurance. It safeguards them if their work leads to accidents, like a pedestrian tripping over their tools. This coverage would help pay for any resulting injuries or property damages.

Coverage Description
Bodily Injury Covers medical expenses and legal fees if someone is injured due to the business’s operations or products.
Property Damage Covers the cost of repairing or replacing someone else’s property that is damaged due to the business’s operations or products.
Advertising Injury Covers legal fees and damages related to claims of libel, slander, or copyright infringement in the business’s advertisements.
Product Liability Covers legal fees and damages if a product manufactured or sold by the business causes injury or property damage.
Completed Operations Covers legal fees and damages if a completed job or service causes injury or property damage after the work is finished.

Key Features of General Liability Insurance

A comprehensive general liability insurance policy helps keep businesses safe from many risks. Bodily injury liability pays for legal costs and settlements if someone gets hurt at your business or because of your work. Property damage protection steps in if your business accidentally damages another’s property, paying for the fix. And personal and advertising liability stops claims about things like defamation and false ads.

General Liability Insurance Coverages

If your business makes, sells, or delivers products, product liability is key. It covers you if your product hurts someone or harms their property. Then there’s medical payments to cover initial medical costs for injured people at your site. Lastly, damage to rented premises helps fix rented spaces if they’re damaged by fire, water, or other risks.

General Liability Insurance Cost

The price of general liability insurance changes a lot. It depends on things like your business type, how many people you have, where you are, and what coverage you want. In 2023, the average price was $59 per month, says Progressive. But, businesses in high-risk areas or with big operations might pay more.

Is General Liability Insurance Required by Law?

In most places, general liability insurance isn’t a must by law. But, it’s vital for protecting against third-party injury claims and property damage. If you don’t have enough commercial liability coverage, a claim could cost a lot. Some customers or contractors might also ask for proof of business insurance. So, getting good general liability insurance is a smart move for all businesses.


What is General Liability Insurance?

General Liability Insurance, or business insurance, keeps companies safe from claims. These include harm to people, damage to property, and legal issues linked to what they sell or do.

Who Needs General Liability Insurance?

It’s crucial for businesses that interact with the public, make or sell things, or run ads. Industries like contracting, consulting, real estate, and property rental often opt for this coverage.

What Does General Liability Insurance Cover?

This insurance protects against various risks. It includes injury, property damage, personal and ad claims, medical payments, finished product liability, and rent premises damage.

How Much Does General Liability Insurance Cost?

The price differs depending on business size, the field, and coverage choices. In 2023, the median cost was per month with Progressive.

Is General Liability Insurance Required by Law?

It’s not always a legal must, but lack of it can be very costly if someone sues your business.

Are General Liability Insurance Premiums Tax-Deductible?

Yes, these fees can usually be written off as a business spending come tax time.

Source Links

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  • Nationwide
  • Allstate
  • Employers
  • The Hartford
  • Travelers
  • Liberty Mutual Insurance
  • Chubb
  • Safeco Insurance
  • Berkshire Hathaway Guard
  • Am Trust
  • Attune
  • and many more..

*Disclaimer: Information on this website is general insurance advice. Please speak with a local insurance professional as they are able to analyze the nuances of your specific business. This is an important step to ensure you don’t have any unknown gaps in your coverage.

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