Contract/lease often required

General Liability Insurance

General liability (GL) is the foundational policy for almost any business that interacts with customers, vendors, or the public. It pays for the other party's medical bills, property repairs, and your legal defense if you're sued over an accident your business caused — a customer slipping in your shop, a contractor damaging a client's floor, a product that injures someone. Most commercial leases, client contracts, and marketplace platforms require proof of GL before they'll work with you, which is why it's usually the first policy a business buys.

General Liability: what it costs, what it covers, who needs it

$30–$100/moTypical monthly cost
$1,000,000 per occurrence / $2,000,000 aggregateTypical coverage limit
Any business with a physical location, employees who visit client sites, or a product/service that could plausibly cause injury or property damage.Who needs this coverage

Rates vary by state, revenue, and claims history — always compare multiple quotes.

Not mandated by law in most states, but almost universally required by landlords, clients, and platforms as a condition of doing business.

What's covered

  • Bodily injury to a customer or third party on your premises or job site
  • Property damage you or an employee cause to someone else's property
  • Products-completed operations (harm caused by a product or finished job after you leave)
  • Legal defense costs, even if the claim is groundless
  • Personal and advertising injury (libel, slander, copyright infringement in ads)

What's excluded

  • Injuries to your own employees (that's workers' compensation)
  • Damage to your own property or vehicles
  • Professional mistakes or bad advice (that's professional liability/E&O)
  • Cyber incidents and data breaches

The foundational policy most landlords, clients, and platforms ask to see proof of before they'll work with you.

What drives the price

  • Industry and claims history for that trade
  • Annual revenue and payroll
  • Number of locations and whether work happens on client sites
  • Coverage limit selected ($1M/$2M is the most common baseline)

Real claim example

A customer trips over a cord left in the aisle of a small retail store and fractures a wrist.

GL covers the customer's ER visit and follow-up care, plus the store's legal defense — roughly $45,000 total.

GL covers the customer's ER visit and follow-up care, plus the store's legal defense — roughly $45,000 total.
Payout from a single real claim — well above the monthly premium
This is exactly why businesses don't skip this coverage.

General Liability is commonly required for businesses of any size. At $30–$100/mo, it is one of the most cost-effective ways to protect against a potentially six-figure claim.

FAQs

Is general liability the same as a business license?

No. A business license is a legal permit to operate; GL is insurance that pays claims. Many cities and clients require both.

Does GL cover my employees if they get hurt on the job?

No — employee injuries are covered by workers' compensation, a separate, often legally required policy.

Can I get GL and other policies bundled together?

Yes — a Business Owner's Policy (BOP) bundles general liability with commercial property coverage, usually at a discount versus buying each separately.

See all policy types