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General liability insurance protects your business from claims involving third-party bodily injury, property damage, personal injury, or advertising injury. Whether a customer slips at your worksite, your crew accidentally damages a client’s property, or you’re sued for defamation — general liability is the policy that steps in.

It covers legal defense costs, settlements, and court-ordered payouts, keeping your business financially protected while you focus on operations.

The three core areas of general liability coverage are:

1. Bodily Injury & Property Damage Liability
   
   Covers physical harm or property damage caused to others due to your business operations.
   
   
2. Personal & Advertising Injury
   
   Protects against claims like libel, slander, copyright infringement, and reputational harm from ads or marketing.
   
   
3. Medical Payments Coverage
   
   Pays for minor medical bills (without legal blame) if someone is injured on your premises or job site.
   
   

These three pillars form the foundation of every standard CGL (Commercial General Liability) policy.

General liability insurance does not cover:

• Employee injuries (covered under workers’ comp)
  
  
• Damage to your own business property or tools
  
  
• Professional mistakes or errors (requires E&O insurance)
  
  
• Contractual disputes or unpaid invoices
  
  
• Cyberattacks or data breaches (requires cyber liability coverage)
  
  
• Intentional harm or criminal acts
  
  

Exclusions matter — always pair GL with the right add-ons like tools coverage, professional liability, or cyber insurance to close your exposure gaps.

Common claims that fall under general liability include:

• A client slipping on your job site and breaking their arm
  
  
• Damage to a customer’s garage door while delivering materials
  
  
• A marketing campaign accidentally infringing on another business’s slogan
  
  
• A subcontractor alleging defamation from a job review
  
  
• A general contractor requiring you to pay for property repairs after an accident
  
  

If the claim involves non-employee injury, outside property damage, or legal advertising exposure, it likely falls under general liability.

A commonly misunderstood item not covered by general liability is employee injury. Many business owners assume GL will pay for crew injuries — it won’t.

Only a workers’ compensation policy covers medical bills, lost wages, and rehabilitation for employees hurt on the job.

Other examples not covered:

• Your damaged work truck (requires commercial auto)
  
  
• Lawsuits over poor workmanship (requires E&O)
  
  

Stolen tools (requires inland marine/tool coverage)

Most small businesses pay between $500 and $2,500 per year for general liability insurance, depending on:

• Type of work (roofing vs. consulting)
  
  
• Annual revenue
  
  
• Crew size/payroll
  
  
• Claims history
  
  
• Coverage limits (e.g., $1M/$2M)
  
  

High-risk trades (e.g., roofers, general contractors) pay more than low-risk professions (e.g., consultants, designers).

We always recommend at least $1M/$2M in coverage as a baseline, especially if you’re working under contracts or in commercial settings.

A Commercial General Liability (CGL) policy covers:

• Medical expenses for third-party injuries
  
  
• Property damage repairs or replacements
  
  
• Legal defense fees for covered lawsuits
  
  
• Settlement costs and court-ordered payouts
  
  
• Advertising-related claims like libel or copyright misuse
  
  

A CGL policy is designed to absorb the financial blow of lawsuits or claims brought against your business by customers, vendors, visitors, or the public.v

The most common CGL policy limit is:

• $1,000,000 per occurrence
  
  
• $2,000,000 aggregate total (per policy year)
  
  

This means your insurer will pay up to $1M per claim and up to $2M total for all claims within the policy period.

For higher-risk trades or government/commercial jobs, you may be required to carry additional limits through a commercial umbrella policy.

Yes — general liability does cover lawsuits that arise from third-party bodily injury, property damage, or advertising injury.

It pays for:

• Legal defense (attorneys, court costs)
  
  
• Judgments and settlements
  
  
• Related investigation or mediation fees
  
  

It won’t cover lawsuits for employee injuries (workers’ comp) or professional errors (E&O) — but for most physical and public-facing incidents, it’s your first line of legal protection.

A general liability policy would not cover:

• Employee injuries (needs workers’ comp)
  
  
• Damage to your own property (use commercial property or auto coverage)
  
  
• Client dissatisfaction due to poor workmanship (use E&O)
  
  
• Personal data breaches (use cyber liability)
  
  
• Deliberate illegal actions or fraud
  
  
• Contract disputes or collection issues
  
  

Always review exclusions in your policy — they define the gaps you’ll need to close with supplemental coverage.

A general liability deductible is the amount you agree to pay out-of-pocket before your insurance coverage kicks in for a claim.

For example, if you have a $500 deductible and a $7,000 claim, you’d pay the first $500, and your insurer covers the remaining $6,500.

Many CGL policies have no deductible for bodily injury or property damage, but may have one for optional coverages like tools or advertising claims.

Cross liability coverage allows one insured party under a policy to sue another insured party as if each were separately insured.

It’s critical when:

• You have multiple entities on one policy (e.g., GC and subcontractor)
  
  
• You’re working on a joint venture or large-scale build
  
  
• A client requests “severability of interests” or “additional insured” clauses
  
  

Without cross liability, a claim between co-insured parties might not be covered — and you could be left exposed during internal disputes.