General Liability Insurance for Entrepreneurs

What is General Liability Insurance?

General Liability (GL) insurance protects your business from claims of bodily injury, property damage, and personal injury (like slander or libel). It's the foundational coverage every business needs, whether you operate from an office, work from home, or meet clients at their locations.

Why Entrepreneurs Need General Liability

Even if you never touch a product or visit a job site, accidents happen. A client trips over your laptop bag during a meeting. Coffee spills on their expensive rug during a presentation. Someone claims you made defamatory statements about a competitor. General Liability insurance protects you from these everyday risks.

What General Liability Covers

Coverage Includes:

✓ Bodily Injury: Medical costs, legal fees if someone is injured
✓ Property Damage: Damage to client property during business operations
✓ Personal & Advertising Injury: Libel, slander, copyright infringement
✓ Medical Payments: Immediate medical costs regardless of fault
✓ Legal Defense: Attorney fees, court costs, settlements

Real-World Scenarios

Scenario 1: The Office Visit

A client visits your office for a contract signing. They trip on a loose cable and break their wrist. They sue for $50,000 in medical bills and lost wages. General Liability insurance covers the claim.

Scenario 2: The Client Meeting

During a presentation at a client's office, you accidentally knock over an expensive display, causing $10,000 in damage. Your GL policy covers the replacement cost and any additional claims.

Scenario 3: The Marketing Misstep

A competitor claims your marketing materials contain false statements about their product. They sue for defamation. Your GL policy covers the legal defense costs and any settlement.

How Much Does General Liability Cost?

General Liability insurance for entrepreneurs typically costs between $400 and $1,500 per year, depending on:

Your location: Urban areas with higher claim rates cost more
Your revenue: Higher business volume = higher premiums
Coverage limits: $1M vs $2M policies
Your operations: Office-based vs field business
Number of employees: Team size affects rates

Landlord Requirement

Most commercial leases require General Liability insurance with the landlord named as "additional insured." Without it, you can't sign the lease.

What's NOT Covered

General Liability doesn't cover everything. Common exclusions include:

Professional mistakes (that's E&O insurance)
Employee injuries (that's Workers Compensation)
Auto accidents (that's Commercial Auto)
Cyber attacks or data breaches (that's Cyber Liability)
Intentional damage or fraud
Property you own (that's Commercial Property)

Coverage Limits Explained

GL policies have three key limits:

Per-Occurrence Limit: Maximum paid for a single incident (typically $1M)
General Aggregate: Maximum for all covered claims in a year (typically $2M)
Products-Completed Operations: Claims from products or completed work

Standard coverage is $1M per occurrence / $2M aggregate. This meets most contract requirements.

Who Needs General Liability?

Every business needs GL insurance, but it's especially important if you:

Meet clients in person at your office or theirs
Lease office or retail space
Host events, webinars, or conferences
Have inventory, equipment, or displays
Work with corporate clients who require it
Have employees or contractors

Bundling with Other Coverage

Many entrepreneurs bundle General Liability with Commercial Property insurance in a Business Owners Policy (BOP). This typically saves 10-20% compared to buying separately and simplifies your insurance management.

Get Your General Liability Quote Today

Don't operate without protection. A single accident can cost tens of thousands in legal fees alone. Get covered in minutes with policies starting around $400/year.