General Liability Insurance
General liability is the foundation of almost every commercial insurance program. It pays for injuries and property damage your business causes to other people, and the legal costs of defending those claims. Landlords, lenders and customers will usually ask to see it before they do business with you.
Reviewed by Nate Feuerman, High Net Worth Insurance Producer at Stonebrook
Last updated
Quick answers
What does general liability insurance cover?
Bodily injury and property damage to others caused by your premises, operations or products, plus personal and advertising injury and legal defense.
What limits are typical?
$1 million per occurrence and $2 million aggregate is the most common starting point. Contracts and leases often require it.
What doesn’t general liability cover?
Your own property, employee injuries, auto accidents, professional mistakes and most cyber and employment claims. Each needs its own policy.
What is an additional insured?
Another party, such as a landlord or client, added to your policy so it protects them for claims arising from your work.
What general liability covers.
A standard commercial general liability (CGL) policy has three main coverage parts.
Bodily injury and property damage
A visitor slips in your lobby, or your work damages a client’s property. Includes products and completed operations.
Personal and advertising injury
Claims of libel, slander, false arrest, wrongful eviction and certain advertising offenses.
Medical payments
Small medical bills for people hurt on your premises, regardless of fault.
Legal defense
Attorneys and court costs, typically paid in addition to the limits on a standard CGL form.
Additional insureds
Extends your coverage to landlords, clients and lenders when your contracts require it.
Waiver of subrogation
Prevents your insurer from pursuing a party you agreed in writing not to hold responsible.
What general liability doesn’t cover, and what does.
| Exposure | Covered by GL? | Where it belongs |
|---|---|---|
| Damage to your own building or equipment | No | Commercial property |
| Lost income after a fire | No | Business income |
| Accidents in company vehicles | No | Commercial auto |
| Mistakes in professional services or care | No | Professional liability or E&O |
| Data breaches and ransomware | No | Cyber insurance |
| Claims against your board or officers | No | D&O |
| Claims above your GL limit | No | Umbrella and excess liability |
Before you sign a lease or contract.
- Read the insurance section.It lists the limits, additional insured wording and waivers they expect.
- Send it to us before you sign.We confirm your policy can meet it, or what it takes to get there.
- Check primary and noncontributory language.Many contracts require your policy to respond first.
- Request the certificate early.We issue certificates and endorsements so you can start on time.
General liability for the industries we know best.
For real estate investors and multi-family buildings, general liability is written on habitational forms that often carry exclusions for lead, assault and animals.
For adult day care, senior living and skilled nursing, general and professional liability are usually written together on one healthcare liability policy.
Smaller businesses can often get general liability, property and business income together in a business owner’s policy (BOP).
A broker who knows your business.
Stonebrook is an independent agency. We work with standard, specialty and excess and surplus lines carriers, so we can shop general liability across carriers instead of fitting you into one company’s program.
Since 1982 we have placed commercial programs for businesses and property owners across the country. We read the fine print, flag the exclusions that matter for your operation, and advocate for you at underwriting, at renewal and at claim time.
Coverage that works together.
Most families need more than one policy. Here is how the pieces fit.
General liability questions, answered.
What does commercial general liability insurance cover?
It covers bodily injury and property damage to third parties caused by your premises, operations, products or completed work, personal and advertising injury such as libel or slander, medical payments, and the cost of defending covered claims.
How much general liability insurance does a business need?
Most businesses start at $1 million per occurrence and $2 million aggregate. Higher-risk operations, and contracts with large clients or landlords, often call for more, which is usually added with an umbrella or excess policy.
What is the difference between occurrence and claims-made coverage?
An occurrence policy covers incidents that happen during the policy period, no matter when the claim is filed. A claims-made policy covers claims first made while the policy is in force. Most general liability is written on an occurrence basis.
Does general liability cover employee injuries?
No. Employee injuries are covered by workers’ compensation and employer’s liability insurance.
Does general liability cover professional mistakes?
No. Errors in professional services or care are excluded and need professional liability or errors and omissions coverage.
What is a certificate of insurance?
A one-page summary showing your coverages and limits, issued to landlords, clients and lenders as proof of insurance. We issue them for our clients, usually the same day.
Is general liability included in a BOP?
Yes. A business owner’s policy combines general liability, property and business income for eligible small and mid-sized businesses.
Let’s build your liability foundation.
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