General liability is often the first policy a business buys, and frequently the first one a client or landlord asks to see. It responds to certain claims that your business caused injury or damage to someone else. Knowing what it is designed for, and what it is not, helps you avoid gaps.
What it is designed to address
A typical commercial general liability policy can respond to third-party claims such as:
- Bodily injury to a customer, visitor, or member of the public.
- Damage to property belonging to someone else.
- Personal and advertising injury, such as certain claims of libel, slander, or copyright misuse in advertising.
- Products and completed operations, meaning injury or damage arising from work you finished or products you sold.
- Defense costs for covered claims, which can be significant even when a claim has no merit.
Where it usually stops
General liability is not a catch-all. Other policies are generally needed for:
- Injuries to your own employees (workers’ compensation).
- Accidents involving vehicles you own or use (commercial auto).
- Damage to your own building or equipment (commercial property).
- Errors in professional advice or services (professional liability).
- Data breaches and cyber incidents (cyber insurance).
Contracts change what you need
Leases, client agreements, and construction contracts often require specific limits, additional insured status, waivers of subrogation, or primary and non-contributory wording. Review those requirements before you buy or renew, not after a certificate request arrives.
Limits and umbrella coverage
General liability policies carry a per-occurrence limit and an aggregate limit. Businesses with higher exposure or contractual requirements often add an umbrella or excess policy to extend those limits over general liability, auto, and employer’s liability.
Common questions
- Does general liability cover my employees’ injuries?
- Generally no. Employee injuries are typically addressed by workers’ compensation and employer’s liability coverage.
- Is general liability required by law?
- Usually not by law, but it is very often required by landlords, clients, licensing bodies, and contracts.
Related
Coverage availability, terms, conditions, exclusions, and pricing vary by insurer and underwriting. This information is general and is not a representation of coverage under any specific policy. This article is educational and is not legal, tax, or risk-management advice.