General liability

How does general liability work for a trucking and logistics business?

Most of what a trucking company insures is on wheels, and that is the business of primary auto liability. General liability covers the other half: the places and activities that are not a moving vehicle. A driver's visitor slips on an icy dock. A forklift in your yard clips a customer's parked car. A tire shop's work is blamed for a wheel-off. A brokerage's office guest is hurt in a fall. These are the kinds of claims general liability is written for.

It generally pays damages you are legally responsible for, plus your defense costs for covered claims, up to the limits on your declarations page. Limits are often stated per occurrence and in an annual aggregate, so read both numbers.

Three terms matter most:

• Occurrence. General liability is commonly written on an occurrence basis, meaning the policy in force when the injury or damage happens is the one that responds. Terms vary by policy.
• Premises and operations. What you do and where you do it, as described on the policy. An activity not described may not be covered.
• Products and completed operations. Claims that arise from work you finished or goods you sold. This is most relevant to repair shops and anyone who services equipment for others.

Contracts matter here. Landlords, customers, and lenders often ask to be listed as an "additional insured" or to receive a waiver of subrogation. Those are endorsements. Ask what your policy's wording says before you promise either in a contract.

What does general liability cover, and what doesn't it?

Policies vary. Read your declarations, definitions, and exclusions. In general:

Often covered

• Bodily injury to people who are not your employees, such as visitors, vendors, and customers, caused by your premises or operations
• Damage to other people's property caused by your premises or operations
• Legal defense costs for covered claims, under many policies
• Claims tied to completed work or products, under many policies, subject to exclusions

Often not covered, or covered only with conditions

• Autos. Most general liability policies exclude injury and damage arising from the ownership, use, or operation of autos. That is primary auto liability.
• Property in your care, custody, or control. A customer's truck sitting in your shop is typically excluded here. That is garagekeepers liability or on-hook towing.
• Freight. That is motor truck cargo.
• Your own employees' injuries. That is workers' compensation and, for independent contractors, occupational accident.
• Your own property. That is commercial property, physical damage, or inland marine.
• Professional services. Claims that your advice or service was wrong are commonly excluded. That is professional liability.
• Pollution and fuel spills, commonly excluded or limited, depending on the policy
• Employment claims and cyber losses. See management liability and cyber.
• Contractual liability beyond what the policy describes, and intentional acts

These are common patterns, not universal ones. A single exclusion can decide a claim, so read yours before you sign a contract that depends on it.

If your general liability limits are lower than a contract asks for, a commercial umbrella may be how that gap is closed.

What affects the cost of general liability?

We don't publish prices. Cost is set by insurers and the licensed agents you work with, not by BreadRoute. These are the factors that generally move it:

• What you do. Terminal, yard, repair shop, tow yard, office-only brokerage, or a mix
• Size. Square footage, number of locations, and annual revenue or payroll, depending on how the insurer rates it
• Visitors and activity. How many outsiders are on site and what hazards exist, such as fuel, lifts, and heavy equipment
• Subcontracted work. Whether you use outside contractors and whether you collect their proof of insurance
• Limits and deductible
• Contract requirements. Additional insured, waiver of subrogation, and higher limits
• Claims history and experience
• Location. Where the premises are

Who typically needs general liability?

• Towing and repair: Shops and tow yards have customers on site and do work on other people's equipment. Customer vehicles are a separate coverage: see garagekeepers liability.
• Small fleets: A fleet with a terminal, yard, or maintenance bay has premises exposure that auto liability does not address.
• Brokers and dispatchers: An office with clients, vendors, and staff coming through has premises exposure. Claims about the quality of your services belong under professional liability.
• New authority: If you work from a home office or park in a shared lot, ask how your policy and your lease or landlord treat that. Some shippers and brokers also ask for general liability certificates.
• Couriers: Contract customers sometimes ask for general liability limits even when you have no premises. Read the contract.
• OTR and local haul: Less direct. It often matters only if you own or rent a yard or terminal.