What Is General Liability Insurance? (2024)

FAQs

Is general liability worth it? ›

Your GLI policy can help pay for your legal fees and settlement costs. Without general liability insurance coverage, your business would have to pay out of pocket for costly claims that could come up during normal business operations.

General insurance covers home, your travel, vehicle, and health (non-life assets) from fire, floods, accidents, man-made disasters, and theft. Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.

So what's the difference? We'll let you in on a little secret: Comprehensive general liability and general liability insurance are the same thing. That's the short answer. (For the longer answer, read on.)

General liability insurance helps protect you from claims that your business caused bodily injury or property damage. It can also protect you if someone sues you for advertising injury. Commercial property insurance covers your business' physical location and equipment, whether you own or lease it.

How much is a 2-million dollar insurance policy for a business? On average, an insurance policy that offers coverage for up to $2 million can cost about $30 a month in premiums.

General liability insurance

This coverage protects against financial loss as the result of bodily injury, property damage, medical expenses, libel, slander, defending lawsuits, and settlement bonds or judgments.

A typical commercial general insurance policy covers accidental damage or injuries but does not cover injuries that are intentional or could be expected to happen.

Then we examine in greater detail the three most important types of insurance: property, liability, and life.

General insurance covers a broad range of risks, including theft, fire, liability for personal injury, damage to property, and even business interruption. It's essential to have general insurance in place to protect yourself from financial losses resulting from these risks.

When an insurance contract covers multiple parties, cross-liability provides coverage for both parties if one makes a claim against the other. Cross-liability coverage treats the different parties—covered under the same contract—as if they have their own separate policies.

Why is comprehensive insurance so expensive? ›

The cost of your comprehensive insurance might increase if you file a claim, live in an area with high crime or bad weather, or if repair costs rise.

What Is the Difference Between Liability and Full Coverage? Liability car insurance only covers damages to other vehicles or injuries to other people when you're driving. Full coverage insurance includes liability coverage along with other types of insurance to protect not only others, but also yourself on the road.

It helps pay for medical payments and property damage if someone other than an employee gets hurt or if your business is held responsible for damaging someone's property. A business owner's policy (or BOP insurance) includes general liability insurance.

General liability insurance is usually tax-deductible because the IRS considers your policy payments to be a business expense. Keep track of all the payments you make toward your policy, as that will be important when you file your taxes at the beginning of the year.

General liability insurance can help cover expenses if you are responsible for a non-employee injury involving your business or damage to property you don't own. Professional liability insurance protects from liability in the case of negligence or a mistake in professional duties.

Some large businesses may choose to self-insure to save money and control costs for their commercial property, auto and general liability coverages. When a business chooses this route, they don't buy a plan from an insurance company.

A $5 million umbrella policy costs around $375 to $525 per year, on average. Every policyholder's umbrella insurance premium will vary based on their personal risk factors, so individuals who own more cars or properties will be more expensive to insure, as will people who are particularly likely to be sued.

Under an occurrence policy, the occurrence of injury or damage is the trigger; liability will be covered under that policy if the injury or damage occurred during the policy period. Under a claims-made policy, the making of a claim triggers coverage.

A Commercial General Liability (CGL) policy protects your business from financial loss should you be liable for property damage or personal and advertising injury caused by your services, business operations or your employees.