Coverage Guide — Updated August 2026
General Liability Insurance for Small Business
General liability insurance (GL) is the foundational commercial insurance policy for every business — covering third-party bodily injury, property damage, and personal injury claims. Most commercial leases, client contracts, and state contractor licenses require it.
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General liability insurance (GL) is the foundational commercial insurance policy for every business — covering third-party bodily injury, property damage, and personal injury claims. Most commercial leases, client contracts, and state contractor licenses require it.
What It Covers ✓
- ✓Third-party bodily injury (slip and fall)
- ✓Third-party property damage
- ✓Personal and advertising injury (defamation, slander)
- ✓Products and completed operations liability
- ✓Medical payments to injured third parties
- ✓Defense costs for covered claims
- ✓Landlord-required additional insured endorsements
- ✓COI generation instantly
What It Does NOT Cover ✗
- ✗Your own employee injuries (workers comp)
- ✗Professional errors/omissions (professional liability)
- ✗Intentional acts
- ✗Auto accidents (commercial auto)
- ✗Damage to your own property
- ✗Cyber attacks (cyber insurance)
Who Needs General Liability Insurance?
- →Every business with a physical location
- →Contractors performing work on client properties
- →Commercial lease signers (required by landlords)
- →State-licensed contractors
- →Product manufacturers and distributors
- →Service businesses with client-facing employees
- →Government contractors
- →Any business with employees interacting with the public
How Much Does It Cost?
Low-risk service business
$400–$800/yr
Retail or office-based
$600–$1,500/yr
Contractor or trades
$1,200–$4,000/yr
High-risk industries
$3,000–$10,000+/yr
Key Terms to Know
Occurrence vs Claims-Made
Occurrence policies cover incidents during the policy period regardless of when the claim is filed. Claims-made policies only cover claims filed during the active policy period. Occurrence is the standard and preferred form for GL.
Per-Occurrence Limit
The maximum your insurer will pay for a single covered incident. Most standard GL policies start at $1M per occurrence — the most common commercial requirement for leases and contracts.
Aggregate Limit
The maximum your insurer will pay for all claims combined during the policy period. Standard GL aggregate is $2M — covering multiple claims up to that total.
Additional Insured
A person or entity added to your GL policy who receives coverage under your policy for liability arising from your operations. Landlords, clients, and GCs commonly require additional insured status.
Primary/Non-Contributory
An endorsement that makes your GL policy pay first (primary) and without seeking contribution from the additional insured's own policy. Required by many GCs and commercial contracts.
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