Is your small business prepared for the unexpected? Secure your business with General Liability (GL) insurance for small businesses.
Commercial General Liability insurance protects your business from liability arising from claims of damage or injury. Often, General Liability insurance is required by landlords, financial institutions, industry regulations, or even your clients.
Don’t think you need GL insurance? Consider the following scenarios:
- One of your employees is carrying a box and drops it on a customer’s property, damaging the floor and wall
- Electrical work you performed was alleged to have been faulty and started a fire.
- Your company posts something in a newsletter that unintentionally harms the reputation of a competitor.
- One of your employees leaves a wet spot on the tile floor and a customer slips and falls, injuring themself severely.
- A product you sold allegedly causes bodily injury from its misuse
All of these scenarios would be covered by General Liability insurance. This type of insurance protects your small business from claims of damage done to a third party — your customer, a bystander, or any other non-employee.
Businesses of all types and in any industry can benefit from the protections given by General Liability insurance. That said, GL insurance is especially important for small businesses that:
- Interact face-to-face with customers and clients
- Work on or at a property owned by a third party
- Lease or own a premises
- Market via advertising or active in trade publications
- Are legally required or mandated by industry regulators to maintain sufficient general liability coverage
Still, offices are exposed to many of the same risks as more physically-intensive companies, even if it’s to a lesser degree.
Businesses that are more likely to file a claim against their GL insurance — like plumbers, manufacturers, or retail stores — would pay a higher premium than those businesses less likely to file a claim, such as accountants, graphic designers, and lawyers.
General Liability Common Questions:
What is General Liability (GL) insurance?
GL insurance covers claims that can come up during normal business operations. Liability claims can be expensive and, without insurance, your business could be left paying costly claims out of pocket. GL is available as a standalone policy or included in a Business Owners Policy, also known as a BOP.
Why do I need General Liability insurance?
You need GL insurance to protect your business. A customer who slips in your store may rack up medical expenses totaling tens of thousands of dollars — or more. Similarly, an electrical fire caused by an electrician’s shoddy installation could destroy a million-dollar home. GL insurance also makes sense for contractors to provide coverage against liability risks from working in other people’s homes.
What does general liability insurance cover for a small business?
The higher your coverage limits, the more protected you are, and the more likely you’ll stay in business after an unfortunate claim of property damage, bodily injury, or personal injury.
Does my small business need General Liability insurance?
How much is General Liability Insurance for an LLC?
The cost varies depending on your industry and coverage needs. Coterie Insurance offers affordable options for all types of small businesses!
Do all businesses need General Liability Insurance?
Your type of business determines your risk. Reach out to the Coterie Insurance Support team if you need help determining coverage.
Do I need business insurance if I have an LLC?
Yes, you definitely need coverage if you have an LLC. That way, if a claim arises, your small business insurance policy will cover it instead of your own bank account.
Is General Liability the same as Commercial General Liability?
Yes. General Liability for small businesses is the same as Commercial General Liability.