Authored and Reviewed by: Sam Meenasian, Licensed Insurance Professional (CA License #0F75955) Last Updated 02/04/2026
This overview is for educational purposes only and is not legal, tax, or insurance advice. Coverage terms and availability vary by state, carrier, and risk.
General liability insurance is one of the most frequently used coverages in a business insurance policy because claims arise in every industry. When someone alleges your business caused bodily injury, property damage, or personal and advertising injury (such as certain kinds of libel, slander, or wrongful eviction), this coverage pays for legal defense, settlements, and related medical costs. Without it, even a routine claim can turn into a serious financial threat.
We’ve specialized in General Liability Insurance since 2007, backed by nearly two decades of experience in commercial insurance.
No matter where your business is located or what type of products you sell, there is a chance that customers will injure themselves. When that happens, they have the right to bring a lawsuit against your business, which could lead to you losing your business assets. If someone is injured on your premises or because of your operations or products, they may bring a claim against your business.
Whether someone breaks a bone after slipping on the floor at your business or becomes ill after using your product, you will be glad to have bodily injury coverage as part of your commercial liability insurance.
Property Damage Coverage
When your business gets blamed for damaging someone’s property, you will be relieved to have property damage coverage.
Whether an employee breaks a customer’s possession while providing services in a home or a customer’s car hits a pothole in your parking lot, this part of general liability insurance helps pay for the repairs.
Products Coverage
Whether you sell products or services, customers have the right to sue you if they are injured or their property is damaged by what you sell. The products and completed operations portion of your general liability insurance can protect you in the event of a lawsuit. It does this by paying for any medical expenses you owe, as well as any legal costs that result from a lawsuit against you.
Even high-quality products have a chance of injuring customers at some point. If you ever face this problem, you will be glad to have product liability coverage. Whether a customer has an allergic reaction to a product or is somehow injured by it, this part of your general liability insurance helps pay for the damages.
Personal And Advertising Injury Coverage
This coverage can protect you from any lawsuits initiated by people who accuse you of libel, slander, or copyright infringement. It helps pay for any legal expenses that arise during the lawsuit, whether you agree to a settlement or decide to go to court.
Personal & Advertising Injury may cover certain offenses (e.g., some libel/slander or certain advertising injuries) unless an exclusion applies, such as acts done with knowledge they would violate another’s rights or publication with knowledge of falsity.
Medical Payments Coverage
Medical Payments coverage can pay certain medical expenses for injuries occurring on your premises or due to your operations, regardless of fault, subject to the policy’s terms and limits.
This part of your commercial liability insurance is designed to pay medical claims without litigation to avoid lawsuits.
Premises Rented To You
This coverage is a standard part of most general liability insurance policies and is designed to protect your business when you lease or rent space from someone else.
If you’re legally liable for any damage to the building space you lease, it is usually for fire damage to the premises. This coverage is typically subject to a separate, lower limit than your main general liability limit.
For small businesses operating out of offices, storefronts, warehouses, or shared commercial spaces, premises rented to you coverage is critical because landlords typically require it in lease agreements.
Completed Operations Coverage
If your business sells products or services to customers away from your premises, you typically need products‑completed operations coverage.
This part of your general liability policy can respond if a covered claim arises after your product has been sold or your work is completed and someone claims it caused bodily injury or property damage.
What's Not Covered Under General Liability?
General liability insurance offers businesses protection from an array of liabilities, but like any policy, it has exclusions - specific situations or types of claims which will not be covered.
Some common exclusions found in general liability policies are:
Intentional Acts: Claims related to deliberate, malicious, or fraudulent acts by the policyholder typically aren't covered.
Contractual Liability: Some contract-assumed liabilities can be excluded, but many CGL policies include coverage for certain ‘insured contracts’ (e.g., specific types of indemnity agreements).
Liquor Liability: Businesses involved with manufacturing, distributing, selling, or serving alcoholic beverages may require a separate liquor liability policy.
Workers' Compensation: Employee injuries typically fall within the coverage of workers' compensation insurance and are excluded from general liability.
Pollution: Damage or injuries caused by pollutants usually require a separate environmental or pollution liability policy.
Aircraft, Auto, and Watercraft: Damage caused by these operations is generally handled under specialized, separate policies.
Damage to Owned Property: Damages resulting from the insured's ownership or control of their own property are typically excluded.
Recall of Products/Work: Costs associated with product or work recalls are often excluded under standard forms.
Loss of Electronic Data: These losses are typically covered under a specific cyber liability policy.
Terrorism: Coverage varies and may be offered separately (often under TRIA) depending on the insurer.
NOTE: Exclusions vary by state and carrier.
How Much Is General Liability Insurance?
The cost of general liability insurance depends on many factors, including your company’s location, how many employees you have, annual gross revenue, etc.
HANDYMAN
From
$39
/ month
Down Payment Required
WELDER
From
$79
/ month
Down Payment Required
FIRE SPRINKLERS
From
$50
/ month
Down Payment Required
TATTOO SHOP
From
$49
/ month
Down Payment Required
Example Price: Handyman in CA, $1M/$2M limits, < $100k revenue, no prior claims — from $39/mo (final price varies, subject to underwriting; varies by state, class code, claims).
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