General Liability Insurance | Gild Insurance
How much is a $1,000,000 general liability policy?
Affordable General Liability Insurance for Small Businesses
General liability insurance (GL), also called commercial general liability insurance (CGL), is essential for small businesses looking to protect themselves against common risks like bodily injury, property damage, and legal claims.
Whether you interact with clients on-site or at their location, this coverage can shield your business from costly lawsuits and accidents. At Gild Insurance, we connect you with trusted insurance partners who understand the needs of small business owners and offer flexible, reliable protection to help you operate with peace of mind.
General Liability Insurance Coverage: What Does It Include?
Physical Injury to Others
Damage to Others’ Property
Advertising Injury
It covers claims that your business caused harm to someone else. Coverage applies on your premises, at a client’s location, or anywhere your business operates.
- Bodily Injury: This coverage helps with expenses from claims for injuries caused by your business’s negligence. It covers medical costs and more.
- Property Damage: Protection against claims for repairing or replacing property damaged by your business’s negligence.
- Advertising Injury: This coverage deals with claims for damage to someone’s reputation caused by your business’ advertising or marketing materials.
Real-world examples of coverage:
- A customer slips on a wet floor and breaks their leg. General liability insurance covers their medical bills and the lawsuit. The average slip-and-fall claim costs $30,000 or more.
- A contractor breaks a pipe in a client’s office. General liability insurance coverage pays the repair costs.
- A competitor claims your ad used their trademarked slogan. General liability insurance for business covers your legal defense and any settlement.
What coverage typically pays:
- Medical costs for injuries to non-employees
- Legal defense fees — lawyers, court costs, and proceedings
- Judgments and settlements awarded to the claimant
This type of coverage is the foundation of your business’ protection, covering the everyday risks of running a business.
What Does General Liability Insurance For Business Not Cover?
General liability insurance is essential1 for small businesses but isn’t a full-coverage policy, typical exclusions include:
- Employee injuries: Injuries to your own employees are typically covered by workers’ compensation insurance.
- Professional errors: Negligence or mistakes in the professional services you provide are covered by professional liability insurance.
- Damage to your own property: Your own equipment, inventory, and building are covered by a commercial property insurance policy or business owners policy.
- Commercial auto accidents: Your business vehicles require a separate commercial auto insurance policy.
- Intentional illegal acts: Policies exclude coverage for deliberate or intentional misconduct.
Who Needs General Liability Insurance?
This type of coverage is at the top of the list of essential protections for any small business. Smaller businesses often face a heavier liability burden2, making this protection especially important if your company has employees and interacts with customers or clients on-site.
It is also the most common type of business insurance. It covers the everyday risks of running a business. Most clients, landlords, and general contractors require proof of it before they’ll work with you.
That proof is called a Certificate of Insurance (COI). Many small businesses get general liability insurance specifically because a client or lease requires one.
It is especially important if your business:
- Works with customers face-to-face or on client property
- Signs contracts or commercial leases
- Sells products or advertises services
- Employs workers at multiple locations or job sites
Common businesses that carry general liability insurance:
- Contractors and plumbers
- Landscapers and lawn care companies
- Restaurants, caterers, and food trucks
- Retail stores and e-commerce sellers
- Photographers and event planners
- Cleaning and janitorial businesses
- IT consultants and professional services firms
- Online businesses using platforms like Amazon, Walmart, Target, or Rangeme to sell their product.
LLCs often carry general liability insurance to meet contract and lease requirements. It also protects against claims that could pierce the liability shield their business structure provides.
How Much Does It Cost?
Generally, Gild customers spend about $250 per year for a general liability policy. That makes it one of the most affordable options for low-risk small businesses.
Industry-wide, costs often start around $30 per month. Annual premiums typically range from $500 to $1,500 or more depending on your business type, location, and size.
The cost of a general liability policy can vary based on several factors:
- Industry: High-risk industries like restaurants pay more than low-risk ones, like remote it consultants due to higher claim potential.
- Business location: Businesses in high-risk areas face higher premiums.
- Coverage limits: Higher limits increase premiums but offer more protection.
- Claims history: Past claims can directly impact your premium rates.
- Number of employees: Businesses with more employees generally pay higher premiums.
The best way to find your general liability insurance cost is to get a free, online quote in minutes!
General Liability Insurance vs. Business Owners Policy (BOP Insurance): Which Do You Need?
General liability insurance covers third-party claims, injuries to others, damage to their property, and advertising injuries.
A Business Owners Policy (BOP Insurance) bundles that same general liability coverage with commercial property insurance. It protects both third parties and your own equipment, inventory, and workspace.
Choose general liability insurance if you work from home, have minimal business property, or need to meet a basic contract requirement quickly.
Choose a BOP Insurance if you own or lease a physical space, carry significant business property, or want broader protection in a single policy.
Does General Liability Insurance Cover Claims Filed After the Policy Ends?
Yes. Most policies are written on an occurrence basis. This means coverage is triggered by when the incident happens, not when the claim is filed.
If a customer slips in your store in December and files a lawsuit the following March, your policy still responds. What triggers coverage is when the incident occurred, not when the lawsuit arrives. This is one of the most important advantages of general liability insurance for small business owners.
What Is General Commercial Liability Insurance?
General commercial liability insurance is another name for general liability insurance. You may also see it called:
- Business liability insurance
- Commercial general liability (CGL)
- Comprehensive general liability
- General liability insurance (GLI)
They all refer to the same coverage.
General commercial liability insurance protects your business from third-party claims involving bodily injury, property damage, and personal or advertising injury. It covers legal defense costs, settlements, and medical payments when your business is found liable.
General commercial liability insurance is commonly required for contracts and leases. It is essential for any business that:
- Interacts with clients face-to-face or on their property
- Has an office or work site
- Works on client property
- Sells products or advertises services
- Signs commercial leases or client contracts
- Operates in a licensed trade
While not mandated by law in most states, many businesses need general commercial liability insurance to sign a lease or secure client contracts. Some licensed trades require it to operate at all.
Get GL Insurance Coverage Today!
Your Gild Insurance Agent is here to understand your business and find the right coverage tailored to your needs.
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