General liability insurance can provide financial protection for some of the most common accidents at a business.

If someone who is not an employee gets injured and the fault lies with your business, general liability insurance can assist with the associated costs. This is commonly referred to as "bodily injury."

In case of accidental damage to property that does not belong to your business, general liability insurance coverage can assist with the costs of repair or replacement.

If your business is accused of causing reputational harm through libel or slander, engaging in false advertising that causes harm, or infringing on someone's copyright, general liability insurance can provide coverage for those claims.

Small business owners frequently purchase general liability insurance because of the comprehensive protection it provides.

There are various names for this type of coverage, including "business liability insurance," "commercial general liability (CGL)," "public liability," or simply "liability insurance." However, for simplicity, we will refer to it as general liability in the following details.

General liability insurance can assist in safeguarding your business from unanticipated expenses resulting from several common types of accidents that can occur and potentially lead to lawsuits. These include:

• Bodily injury sustained by non-employees

• Property damage caused to someone else's property

• Court and legal fees associated with a lawsuit

• Medical expenses incurred by someone who sustains an injury at your business

• Advertising harm

• Accusations of libel or slander resulting in personal injury or reputational harm

Learn more about what general liability covers.

General liability insurance is often incorporated into various business insurance packages as it can offer coverage for many of the risks that small business owners commonly encounter in their day-to-day operations.

While general liability insurance is not usually legally mandated, some clients or agencies may request that you provide a certificate of insurance before doing business with you.

The following are examples of how various types of businesses can be safeguarded against liability risks with a general liability insurance policy:

Construction trades

Artisan contractors and other construction professionals are frequently obligated to obtain general liability insurance to obtain professional licenses or perform certain jobs. This is because the nature of their work carries the potential for bodily injury or property damage to other individuals.

Restaurants and food service

Food business owners are often concerned about the risk of slip-and-fall accidents occurring on their premises. General liability insurance can help cover the medical expenses and lawsuit costs associated with such accidents. Some businesses may also opt to add liquor liability or employer liability coverage for additional protection.

Retail and e-commerce

Retail business owners can also benefit from the protection provided by general liability insurance in the event of customer injuries. Additionally, some insurance policies, such as GravySpoon policies, may include coverage for product liability.

Fitness professionals

Personal trainers may be required to have general liability insurance in order to obtain certain professional certifications, and it may also be a requirement if they are employed by a gym or fitness center.

Cleaning businesses

General liability insurance can protect cleaners from financial losses in case of accidental damage or breakage of property while performing their job. Furthermore, if you intend to lease commercial property, you may be required to have general liability insurance as part of the lease agreement.

We have already discussed some of the essential safeguards that business liability insurance can provide in case of an incident.

Now, let's explore some advantages that general liability insurance can provide during your day-to-day business activities, assuming that there are no accidents.

It can help you get more jobs

By having business liability insurance, you can demonstrate to clients that your business is dependable and accountable for any errors or mishaps that may occur. This is why some business owners make it a point to advertise that they are insured.

Additionally, it could give you an edge over competitors if a prospective client has the option to choose between your business and another that doesn't have insurance.

Furthermore, many bigger clients demand insurance coverage before they will enter into a contract with you.

It keeps your business in compliance

In some states and cities, obtaining a business permit may only be possible if you can provide proof of an active general liability insurance policy and a certificate of insurance.

If your business is certified or accredited by a professional organization, you may be obligated to maintain your insurance coverage.

Your commercial lease might require it

If you plan to lease commercial space, property owners may request to see your certificate of insurance, and having business liability insurance can fulfill that requirement.

This is because it demonstrates that you have financial protection to cover expenses related to customer injuries that may occur at your leased space.

It lets you focus on growing your business

By having business liability insurance, you can feel more secure knowing that you have financial protection in case an accident or mistake occurs.

This can bring peace of mind and allow you to focus on running your business without worrying about unexpected expenses or legal fees that may arise from accidents or incidents.

The cost of general liability insurance varies depending on several factors, and it can be as low as $11 per month for businesses with a low level of risk.

Several factors influence the price you’ll pay for insurance, including:

• Your industry

• Your business operations

• The size of your business

• Where you do business

• Your business needs and how much coverage you want to purchase

• Policy limits

Get a basic estimate of how much general liability can cost with our general liability calculator.

GravySpoon offers a simple online process that allows you to obtain a certificate of insurance in less than 10 minutes, along with the option to purchase cost-effective general liability insurance.

To begin exploring your options for small business general liability insurance, you can initiate an instant quote through our online platform. Here's a breakdown of how the process works:

During the instant quote process, we'll ask you a few fundamental questions about your business and its operations. These may include:

• The industry in which your business operates.

• The locations where you conduct your business.

• The number of years you've been running your business.

• The number of employees that work for your business.

• Your anticipated annual revenue.

• Your recent insurance coverage and claims history.

Once you have answered the basic questions about your business, we will generate a tailored insurance quote for you that includes general liability coverage as well as other recommended coverage options.

If the quote meets your needs, you can then adjust the coverage limits to your preference and complete your purchase.

Once you have made your payment, your coverage will begin right away, and you will be able to access your certificate of insurance immediately.

Begin your instant quote today for free to explore your options and get the coverage your business needs.

While general liability insurance can offer crucial financial protection to your business in the event of an accident, it may not cover all of the risks that your business is exposed to.

Therefore, it's essential to consider other forms of coverage when evaluating your business insurance options and formulating your risk management strategy. Here are some examples of additional coverage options you may want to consider:

Other types of liability coverage

Professional liability insurance can be a valuable coverage option that can help safeguard your business from losses stemming from professional errors or mistakes.

In addition to this, depending on the nature of your business and the industry you operate in, you may also want to consider other forms of coverage. For instance:

Workers’ compensation

Having workers' compensation insurance is mandatory in most states if you employ workers. This insurance can provide financial assistance to your employees by covering their medical expenses and lost wages in the event of a workplace accident.

Learn more about workers’ compensation insurance.

Commercial property insurance

Property insurance coverage can assist in paying for the repair or replacement of your business property. It is important to note that general liability insurance only provides coverage for property that does not belong to you.

Learn more about commercial property insurance.

Our team will guide you through a thorough examination of the differences and similarities between general liability insurance and other business insurance policies to assist you in making an informed decision that best suits the needs of your business.

• General Liability insurance vs Professional Liability

• General Liability insurance vs Business Owner's Policy

• General Liability insurance vs Workers' Compensation

• Liability insurance vs Commercial Property insurance

• Compare other business insurance policies

In case you are unable to find the answers to your questions, our team of licensed insurance advisors is available to assist you. They are standing by to provide you with the necessary support and guidance to help you make an informed decision regarding your business insurance needs.

Is General Liability insurance required by law?

New business owners often obtain general liability insurance as their first form of coverage, although it is not usually mandated by law. Nevertheless, certain agencies may mandate that you have coverage before granting a professional license or permit. This requirement is common in the construction industry.

Furthermore, clients may require evidence of insurance coverage before collaborating with you on a project.

What is the difference between Professional Liability and General Liability?

We receive this question frequently, which is why we have created a detailed overview comparing general liability and professional liability insurance. Here's a brief summary:

While both professional liability and general liability insurance offer similar advantages, there is one crucial distinction. Professional liability insurance can assist in covering claims of professional negligence or errors, typically related to the advice you provide to clients or customers, rather than accidents that occur on the job.

On the other hand, general liability insurance provides financial protection for more physical accidents, such as property damage and injuries involving individuals who are not your employees.

Learn more about the difference between professional liability and general liability.

What is General Liability aggregate?

When looking into general liability coverage, you may come across the term "general liability aggregate," which is frequently utilized in the insurance sector.

The general liability aggregate is the highest amount of money that an insurance provider will pay out over the course of your policy period, which is typically one year. If your company has costly claims, you may reach your aggregate limit, and you will be accountable for covering the remaining expenses out of your own pocket.

It's worth noting that the aggregate limit is distinct from the "per occurrence" limit, which is the maximum amount that your insurance policy will pay out per claim within the term of your policy.

For instance, if your general liability aggregate limit is $300,000 and you've made three claims totaling $100,000 each during your policy term (usually a year), you've exceeded your aggregate limit, and your insurance provider will not cover any additional claims.

Knowing your aggregate limit when purchasing general liability insurance is essential. If you exceed your limit during your policy term, you will be responsible for any expenditures that exceed the limit out of your own pocket.

Learn more about aggregate limit of liability.

Does General Liability insurance cover property damage?

While general liability insurance covers expenses related to property damage, it only pertains to property that doesn't belong to you. If you're looking to safeguard the physical assets that are crucial for running your business, commercial property insurance is the way to go. This type of coverage can help protect your business inventory, equipment, furniture, furnishings, and physical structures. If you want to bundle your general liability and commercial property insurance, consider purchasing a business owner's policy (BOP insurance). Typically, a BOP is less expensive than purchasing the coverage separately.

Learn more about BOP insurance.

Does commercial General Liability insurance cover automobile liability?

General liability insurance does not extend coverage for automobile liability or any expenses related to driving, whether for business or personal purposes.

For businesses that use vehicles for commercial purposes, commercial auto insurance can provide coverage for:

• Injuries to others if you or an employee is responsible for an accident

• Property damage to other people's property

• Repairs for your business vehicle

• Towing and rentals if your vehicle is damaged

It's important to note that general liability insurance and commercial auto insurance are separate policies and require different coverage.

Learn more about commercial auto coverage.

Does commercial General Liability insurance cover theft?

To clarify, general liability insurance only covers theft or damage to property that does not belong to you, such as customer property. However, it does not cover the loss of your own personal or business items due to theft. In case of theft of your own possessions, you need additional insurance coverage.

For example, if you are a contractor or own a cleaning business and your tools and equipment are stolen, you can bundle tools and equipment insurance with your GravySpoon Insurance general liability coverage. This will provide you with protection for your own personal or business items, which are not covered by general liability insurance.

Will General Liability protect me if my tools get stolen?

If you own a cleaning business or work as a contractor, it is important to note that general liability insurance won't provide coverage for damage or theft of your tools and equipment. Therefore, it is recommended that you consider adding a tools and equipment insurance policy.

This type of coverage can be particularly useful if you frequently work at different job sites as it can provide financial protection for your equipment no matter where you go. For instance, if your power tools get damaged due to a water leak at a new house you are building, your insurance could assist in paying for new tools.

Learn more about tools & equipment insurance.

Does General Liability insurance cover employee injuries?

General liability insurance provides financial protection in case your business is held responsible for causing injury to a third party, but it doesn't cover injuries sustained by you or your employees.

On the other hand, workers’ compensation insurance is designed to cover medical expenses and lost wages for employees who get injured on the job. This type of insurance is often legally required in most states as soon as you hire an employee. Additionally, business owners may opt to purchase optional business owner's coverage for protection in case they get injured on the job.

Learn more about workers’ compensation insurance.

Is General Liability insurance tax deductible?

To potentially reduce your tax burden, you may be able to deduct your general liability insurance premiums. However, to ensure eligibility, it is recommended to seek advice from a licensed accounting professional. The IRS considers insurance payments of this nature to be a justifiable and essential business expense. Therefore, it's crucial to maintain records of your annual policy expenses.

How much General Liability insurance do I need?

Our small business insurance is customized to fit the specific needs of each business since they are all different and have varying insurance requirements. Several factors determine the coverage you need, including the nature of your work, the number of employees and subcontractors you have, the level of risk your company faces, and the state where you operate.

When obtaining an instant quote from GravySpoon online, you can review options and adjust limits according to your preferences.

Once you've purchased coverage with GravySpoon, you'll receive your policy documents and certificate of insurance (COI) instantly in less than 10 minutes. You can access these documents and your COI online 24/7 or via the GravySpoon app for iPhone or Android. It's worth noting that general liability insurance premiums can usually be deducted from your taxes, but it's essential to consult a licensed accounting professional to ensure eligibility. Keep a record of how much you pay annually for your policy as the IRS considers payments made for this type of insurance to be an "ordinary and necessary" business expense.

Learn more about our digital certificate of insurance.