What Is General Liability Insurance?

General Liability Insurance, also known as Commercial General Liability or CGL insurance, is designed to help protect businesses from certain claims involving injuries or damage caused by business operations, products, services, or premises.

For many businesses, it is one of the foundational forms of commercial insurance because everyday operations can create liability risks even when the business follows proper procedures.

A General Liability policy may help cover covered legal defense costs, settlements, judgments, and certain medical expenses associated with third-party claims.​​

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Who Needs General Liability Insurance?

General Liability Insurance can be valuable for businesses that interact with customers, work at client locations, rent commercial space, sell products, or perform services that could accidentally cause injury or property damage.

Businesses commonly carrying General Liability coverage include:

• Contractors

• Construction Companies

• Restaurants

• Retail Businesses

• Cleaning Services

• Property Managers

• Landscapers

• Professional Services

• Hospitality Businesses

• Manufacturers

• Small and Growing Businesses

General Liability coverage may also be required by landlords, clients, project owners, or contracts before a business can begin work.​​

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What Does General Liability Insurance Cover?

Coverage varies by policy, but General Liability Insurance commonly addresses several major categories of business risk.

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1. Bodily Injury

If a customer, vendor, visitor, or other third party is injured because of your business operations, General Liability may help cover eligible medical expenses, legal defense costs, settlements, or judgments.

Example: A customer slips on a wet floor inside your business and suffers an injury.

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2. Property Damage

General Liability may help when your business accidentally damages property belonging to someone else.

Example: A contractor accidentally damages a client's flooring while completing a project.

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3. Personal and Advertising Injury

General Liability may provide protection against certain claims involving:

• Libel

• Slander

• Certain forms of defamation

• Copyright infringement in advertising

• Use of another company's advertising ideas

• Certain privacy-related claims

Coverage depends on the circumstances and policy terms.

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4. Products and Completed Operations

Liability does not always end when a product is sold or a project is completed.

Products and Completed Operations coverage may help protect a business if completed work or a product later causes bodily injury or property damage.

Example: A contractor completes an installation and a defect later causes property damage.

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5. Damage to Rented Premises

General Liability policies may provide limited protection for certain damage to premises rented by your business, subject to policy terms and limits.

This can be especially relevant for businesses operating from leased commercial spaces.

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6. Medical Payments

Certain General Liability policies include Medical Payments coverage for eligible medical expenses when a third party is injured on your premises or because of your operations.

This coverage may apply regardless of fault in certain circumstances, subject to policy conditions and limits.

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General Liability Explained

Watch our quick General Liability overview from a CCIS commercial insurance advisor.

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Who Needs General Liability Insurance?

General Liability Insurance can be valuable for businesses of nearly every size and industry, particularly those that interact with customers, work at client locations, rent commercial space, sell products, or perform services.

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Businesses that commonly purchase General Liability coverage include:

• Contractors

• Construction companies

• Restaurants

• Retail businesses

• Cleaning companies

• Landscaping businesses

• Property management companies

• Professional service businesses

• Manufacturers

• Hospitality businesses

• Food trucks

• Electricians

• Plumbers

• Painters

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Some clients, landlords, or contractors may also require businesses to carry General Liability Insurance before entering into a contract or beginning work.

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Common General Liability Claims

Understanding real-world scenarios can make liability coverage easier to understand.

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Slip and Fall Claims

A customer slips on a wet floor and requires medical treatment.

General Liability may help cover eligible medical expenses and legal costs if the business is held responsible.

Read more → Slip and Fall Claims: What Businesses Should Know

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Property Damage Claims

An employee or contractor accidentally damages a client's property while performing work.

General Liability may help cover eligible repair costs or legal expenses.

Read more → Property Damage Liability Explained

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Product Liability Claims

A product sold or distributed by a business causes injury or property damage.

Coverage may be available through the Products and Completed Operations portion of a General Liability policy.

Read more → What Is Product Liability Insurance?

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Completed Operations Claims

A business completes work for a customer, but the work later causes property damage or injury.

Read more → Products and Completed Operations Coverage Explained

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Personal and Advertising Injury Claims

A business faces a claim involving certain advertising or reputational issues such as libel, slander, or qualifying copyright infringement.

Read more → Personal and Advertising Injury Coverage Explained​​​

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What Isn't Typically Covered?

General Liability Insurance provides broad protection, but it does not cover every risk a business may face.

Depending on the policy, General Liability typically does not cover:

• Injuries to your employees

• Professional errors or negligence

• Commercial auto accidents

• Damage to your own business property

• Employment-related claims

• Intentional or illegal acts

• Certain contractual liabilities

These risks may require other types of insurance, such as Workers' Compensation, Professional Liability, Commercial Auto, Commercial Property, or Employment Practices Liability Insurance (EPLI).

Learn more → Employment Practices Liability Insurance

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Understanding General Liability Limits

General Liability policies contain several limits that determine how much the insurer may pay for covered claims.

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Each Occurrence Limit

The Each Occurrence Limit is the maximum amount the policy may pay for a single covered occurrence.

A common limit is $1 million per occurrence, although available limits vary by policy and insurer.

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General Aggregate Limit

The General Aggregate Limit is the maximum amount the policy may pay for certain covered claims during the policy period.

For example, a policy may have a $1 million Each Occurrence Limit and a $2 million General Aggregate Limit.

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Products and Completed Operations Aggregate

This is the maximum amount the policy may pay during the policy period for covered claims arising from your products or completed work.

The appropriate limits depend on your business operations, contracts, industry, and overall risk exposure.

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What Affects the Cost of General Liability Insurance?

The cost of General Liability Insurance varies from business to business.

Factors that may affect your premium include:

• Industry and type of business

• Business location

• Annual revenue

• Payroll

• Number of employees

• Claims history

• Coverage limits

• Deductible

• Business operations and risk exposure

Because every business is different, comparing coverage options from multiple insurance carriers can help identify a policy that fits both your risks and budget.

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Ready to Protect Your Business?

Every business faces risk, but the right insurance coverage can help prevent an unexpected claim from becoming a major financial setback.

We'll help you understand your General Liability options, compare available coverage, and determine what makes sense for your business.​​​​

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