Complete Guide — Updated September 2026
General Liability Insurance: What It Covers, What It Misses & What It Costs
General Liability (GL) insurance, also called Commercial General Liability (CGL), protects businesses against third-party claims for bodily injury, property damage, and personal or advertising injury. It is the foundational business insurance policy and is required by most commercial landlords, clients, and licensing boards.
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General Liability (GL) insurance, also called Commercial General Liability (CGL), protects businesses against third-party claims for bodily injury, property damage, and personal or advertising injury. It is the foundational business insurance policy and is required by most commercial landlords, clients, and licensing boards.
What It Covers ✓
- ✓Bodily injury to third parties (customers, visitors, contractors)
- ✓Property damage you cause to others' property
- ✓Personal and advertising injury — libel, slander, copyright infringement
- ✓Medical payments for minor injuries (regardless of fault)
- ✓Legal defense costs — even for frivolous claims
- ✓Products-completed operations — claims arising after work is done
What It Does NOT Cover ✗
- ✗Employee injuries (covered by Workers' Comp)
- ✗Professional errors or omissions (covered by E&O)
- ✗Your own property or equipment
- ✗Commercial auto accidents on public roads
- ✗Intentional acts by the insured
- ✗Cyber events (most standard CGL policies exclude these)
Who Needs General Liability Insurance?
- →Contractors and construction trades
- →Retail and e-commerce businesses
- →Restaurants and food service
- →Cleaning and janitorial services
- →Consultants and professional services
- →Healthcare and wellness businesses
- →Event venues and entertainment
- →Virtually any business with customers or clients
How Much Does It Cost?
Solo / Low-risk (consulting)
$400–$1,000/year
Small business (retail, office)
$600–$2,000/year
Small team (service business)
$1,200–$4,000/year
High-risk (construction trades)
$3,000–$12,000/year
Key Terms to Know
Occurrence vs Claims-Made
An occurrence policy covers incidents during the policy period regardless of when the claim is filed. A claims-made policy only covers claims filed while the policy is active. Most small businesses should carry occurrence form GL.
Per-Occurrence Limit
The maximum paid for a single claim. Standard small business GL typically comes with $1,000,000 per-occurrence limits.
Aggregate Limit
The total maximum paid across all claims in a policy year. Standard is $2,000,000 aggregate.
Additional Insured
A party added to your policy who receives coverage protection — typically required by clients, landlords, or general contractors.
CGL Form
The standard ISO CG 00 01 form used by most carriers. Requesting this form number ensures you are getting industry-standard coverage terms.
How to Get General Liability Insurance
Identify your business type and get your class code — this determines your base rate
Request quotes with $1M/$2M limits as a baseline; commercial clients often require these minimums
Review exclusions carefully — especially pollution, professional liability, and auto exclusions
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