What is general liability insurance coverage for small business?
Asked by: Prof. Leone Effertz I | Last update: September 4, 2025Score: 4.9/5 (51 votes)
How much liability coverage does the average small business need?
General liability insurance: Most small businesses choose $1 million per occurrence and $2 million aggregate limits.
What is not covered under general liability?
General liability insurance doesn't cover employee injuries and illnesses. If one of your workers gets sick or hurt on the job, and that employee files a work-related injury lawsuit against your business, you would need employer's liability insurance to provide coverage for this.
How much coverage is a typical general liability insurance policy providing?
However, many small businesses opt for the standard $1 million / $2 million general liability policy. This means the policy will pay up to $1 million to cover any one claim, with a $2 million policy limit for the lifetime of the policy, which is typically one year.
What claims fall under general liability?
How Do General Liability Insurance Claims Work? General liability insurance covers bodily injuries and property damage claims that your business may have caused. If someone reports a claim or sues your business for one of these reasons, your general liability policy can help pay your costs to respond to it.
General Liability Insurance Explained in 10 Minutes
What is an example of general liability coverage?
Here are three typical coverage features included in a general liability insurance policy-- premises liability for bodily injuries to customers or other people not employed by your company; products liability for damage to property or bodily injury to people caused by your products or services; and personal and ...
What is the limit for general liability insurance?
LIMITS: The limit you select can usually range from $300,000 up to $1,000,000 each occurrence. To obtain a higher limit requires the purchase of an Umbrella or Excess Liability policy. PREMIUM: The minimum policy premium is usually $500.
How much does 1000000 general liability insurance cost?
On average, a $1 million liability insurance policy costs $69 a month, or $824 a year, for our small business owners. Keep in mind that every business is different, so the $1 million liability insurance cost will vary.
What is a standard general liability policy?
The commercial general liability (CGL) policy is a standard insurance policy issued to business organizations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) ...
Can I get business insurance without an LLC?
Some businesses and self-employed individuals may not need a business license depending on their profession. However, they can still get liability insurance without a business license. Regardless of requirement, liability coverage is an essential part of risk management for any business owner.
What are the three areas of general liability?
- General Liability.
- Automobile Liability.
- Employment Practices Liability.
Does general liability cover owner injury?
What Is General Liability Coverage? Unlike commercial property coverage, general liability only provides coverage for damage and injuries your business causes to a third party. It does not cover damage to your business' own property or injuries to your employees.
Does general liability cover loss of income?
It can cover: Business location, merchandise, store contents, and equipment. Business interruption expenses and loss of income. Cases where someone is hurt on your premises.
What is the best type of insurance for a small business?
General liability is recommended for all small businesses
Almost every small business needs general liability insurance. This liability coverage provides protection against common customer or client accidents, including bodily injuries, property damage, and personal injuries.
How much insurance does an LLC need?
Finding out how much LLC insurance costs at the professional level will vary depending on your location, the number of employees you have, and more. On average, though, an LLC owner might be looking at a price tag of anywhere between $500 to $1,000 on professional liability insurance.
Who is an insured under a CGL policy?
The first and most obvious entity that is insured under a CGL policy is the “Named Insured,” which is explicitly mentioned in the policy documents. In most cases, the Named Insured is the business entity that has purchased the insurance coverage.
How much does a $1 million umbrella policy cost?
Umbrella policies typically start at $1 million in liability coverage. According to an ACE Private Risk Services report noted by Forbes, the average cost a $1 million personal umbrella policy is $383 per year for an individual with one home, two cars, and two drivers.
What is 100k 300k liability coverage?
Having a 100/300/50 auto insurance policy means you have $100,000 in coverage for bodily injury liability per person, $300,000 for bodily injury liability per accident, and $50,000 for property damage liability.
What does $1 million liability cover?
A $1 million general liability insurance policy means your insurance company will provide financial protection for your business up to $1 million in covered losses or damages. Beyond that $1 million limit, you'll have to pay for costs out of pocket without the help of your insurer.
What is covered under general liability insurance?
What does general liability insurance cover? General liability insurance policies typically cover you and your company for claims involving bodily injuries and property damage resulting from your products, services or operations. It may also cover you if you are held liable for damages to your landlord's property.
Are medical expenses covered by general liability?
Medical payments is a general liability coverage that reimburses others, without regard to the insured's liability, for medical or funeral expenses incurred by such persons as a result of bodily injury (BI) or death sustained by accident under the conditions specified in the policy.
Can I have multiple general liability policies?
For example, a general liability policy may not cover certain types of professional errors or cyber liabilities. Financial protection: Having multiple insurance policies can provide additional layers of financial protection for a business.
Does general liability cover getting sued?
General liability insurance also helps financially protect your business if you're sued. Your GLI policy can help pay for your legal fees and settlement costs.