What is general liability insurance?

What’s General Liability Insurance?

If you own a business, one of the most important foundational coverages you can take is General Liability insurance. No matter the size of your company — from a small startup to an established operation — you deal with everyday risks that could lead to costly claims. General Liability insurance is designed to protect your business from common third-party exposures that can arise during normal operations.

What Does General Liability Insurance Cover?

At its core, General Liability insurance protects against claims involving third-party bodily injury, property damage, and personal or advertising injury.

Bodily Injury: If a customer slips and falls at your location or is injured by your business operations, General Liability coverage can help cover medical expenses and legal costs. And potential settlements.

Property Damage: If you or your employees accidentally damage someone else’s property while performing work, this coverage can help pay for repairs or replacement.

Personal and Advertising Injury: This includes claims such as libel, slander, copyright infringement in advertising, or other reputational harms tied to your marketing activities.

In addition to paying claims, General Liability also covers legal defense costs. Even if a claim is groundless, legal fees alone can be financially overwhelming for a business.

Why Is General Liability So Important?

Many business owners assume accidents are rare — until one happens. A single lawsuit can cost tens of thousands of dollars or more. Without proper coverage, your business assets, savings, and future earnings could be at risk.

General Liability insurance is often required to:

Sign commercial leases

Obtain contracts with larger companies

Work as a subcontractor

Secure certain business licenses

It’s frequently considered the starting point of a business insurance program.

What General Liability Doesn’t Cover

It’s just as important to get what this policy doesn’t cover. General Liability typically doesn’t cover:

Employee injuries (Workers’ Compensation handles that)

Professional mistakes or advice (Professional Liability may apply)

Auto accidents (Commercial Auto coverage is needed)

Damage to your own business property (Commercial Property insurance applies)

Because every business is different, the policy should be tailored to your operations, contracts, and industry risks.

Who Needs General Liability Insurance?

Almost every business should take General Liability coverage. Retail stores, contractors, restaurants, offices, churches, manufacturers, service providers. And all specialty operations involve exposure to third-party claims. Even home-based businesses can benefit from protection.

The key isn’t just having a policy — but having the right limits and endorsements tailored to your business model.

Make Sure Your Coverage Is Built Correctly

Policies aren’t all the same. Coverage limits, exclusions, additional insured endorsements, and contractual requirements can significantly affect how your policy responds to a claim. Reviewing your coverage before an incident occurs can prevent major financial surprises later.

If you’re unsure whether your current policy properly protects your business, now is the time to check it.

Call 952-222-8073 today for a free General Liability Insurance coverage check and quote.

Protecting your business starts with understanding your risks and making sure your foundation is solid. Don’t wait until a claim exposes a gap in your coverage.

Contact us at 952-222-8073 to speak with a specialist and ensure your General Liability insurance is structured correctly.