General Liability Insurance

General liability insurance covers third-party claims for bodily injury, property damage, and advertising injury against your business. It typically pays for legal defense costs, medical expenses, and settlements if your business is found liable.

General liability is not federally required, but many landlords, clients, and contracts require a certificate of insurance before doing business with you. Some states and industries have their own requirements. It is one of the most commonly required coverages for small businesses.

Costs vary based on your industry, revenue, location, and coverage limits. Many small businesses pay between $400 and $1,500 per year for general liability, but businesses in higher-risk industries or with higher revenue can pay significantly more. Always compare quotes from multiple providers.

General liability covers physical incidents bodily injury and property damage caused by your business operations. Professional liability (also called E&O) covers financial harm caused by errors, omissions, or negligence in your professional services or advice. Many businesses need both.

Many small businesses carry $1 million per occurrence and $2 million aggregate, which is also the limit many client contracts and leases require. Higher-risk work or larger contracts may call for more, sometimes through an umbrella policy. Reviewing your contract requirements is a good starting point.

A certificate of insurance (COI) is a one-page document that proves your coverage, limits, and policy dates. Clients, landlords, and general contractors commonly request one before work begins or a lease is signed. Your provider can typically issue certificates quickly once your policy is active.

No. Employee injuries fall under workers compensation, which most states require once you have employees. General liability covers third parties such as customers, visitors, and other businesses. Most businesses with employees carry both policies.

Business insurance premiums, including general liability, are generally deductible as an ordinary business expense. Tax situations vary, so it is worth confirming with a qualified tax professional.