Protect Your Money
General Liability Insurance Explained
What general liability covers, what it usually does not, and how small businesses should compare limits.
General liability focuses on third-party injury, property damage, and related claims.
It is not workers comp, auto, professional liability, or property insurance.
Contracts often specify required limits.
Quick Answer
General liability insurance is a common small-business policy for claims involving third-party bodily injury, third-party property damage, and certain personal or advertising injury claims. It is often required by landlords, clients, lenders, or event organizers.
What It May Cover
- A customer slips and is injured at your space or work area.
- You accidentally damage a client's property while working.
- A covered advertising injury claim, depending on policy language.
- Legal defense costs for covered claims, subject to policy terms.
What It Usually Is Not
- Workers compensation for employee injuries.
- Commercial auto insurance for vehicles.
- Professional liability for advice, design, consulting, or errors.
- Property insurance for your own tools, inventory, or building.
- Cyber liability for data incidents.
How to Compare
Compare per-occurrence limit, aggregate limit, deductible, exclusions, additional insured rules, certificate speed, and whether subcontractors are allowed. A cheap policy with the wrong exclusion can be expensive later.
Next Best Step
List your top three claim scenarios, then ask each agent or carrier to show how the policy would respond and what would be excluded.