Is general liability required by law?

Usually not by state law, but leases, customer contracts, general contractors, and many permits require it. In practice, most businesses that work with the public or for other companies carry it.

What is the difference between general liability and a business owner's policy?

A business owner's policy (BOP) packages general liability with commercial property, often at a lower combined price, for eligible small businesses. General liability alone does not cover your own building, equipment, or inventory.

What is an additional insured?

A person or company, often a general contractor or property owner, added to your policy by endorsement so they have some protection for claims arising from your work. Contracts usually specify exactly which endorsement wording they need.

Coverage guide

General liability insurance

Commercial general liability (CGL) responds when your business is blamed for injuring someone or damaging their property, at your location, on a job site, or from work you finished. It is usually the first policy a customer, landlord, or general contractor asks to see, and the one most often named in contracts.

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What general liability commonly covers

Who usually carries it

Businesses that work at customer locations or job sites
Shops, offices, and storefronts that customers visit
Subcontractors whose contracts require a certificate of insurance
Businesses that lease space (most leases require it)

Commonly covered

Bodily injury to people who are not your employees
Damage to property that belongs to others
Injury or damage caused by work you have completed (products-completed operations)
Personal and advertising injury, such as libel or slander claims
Legal defense costs for covered claims, usually in addition to the limit
Small medical payments to injured visitors, regardless of fault

Commonly excluded or limited

Injuries to your own employees (that is workers' compensation)
Vehicles you own or drive for work (that is commercial auto)
Your own tools, equipment, and building (property or inland marine)
Professional mistakes and advice (professional liability)
Data breaches (cyber)
Faulty work itself; policies often cover the damage it causes, not the cost to redo it

This page is general information about how these policies commonly work. Every policy's own forms, endorsements, and exclusions decide what it covers. For advice about your business, talk with a licensed insurance agent.

Before your renewal or your next contract

What to check on your own policy

Each-occurrence and general aggregate limits compared with what your contracts require
Whether the aggregate applies per project or per location, if your contracts ask for it
Additional insured endorsements, and whether they are blanket or must be scheduled
Waiver of subrogation and primary/non-contributory wording your contracts call for
Classification codes that match the work you actually do
Exclusions added by endorsement, such as residential work, height limits, or specific operations

Not sure what your policy says?

Upload your declarations page. The free AI coverage check lists your coverages, limits, and deductibles in plain language and flags items to discuss with a licensed agent.

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Industries that often ask about general liability

General liability questions

Know what you're covered for before you need it.

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