What is general liability insurance?
General liability insurance (GL) protects against lawsuits and other claims arising from your operations. Also called business liability insurance, it covers a wide range of risks that small business owners face, including:
Learn more about these general liability coverages and how they can protect your business.
Who needs general liability insurance?
A commercial general liability policy is a good fit for businesses that work with clients, sell products, advertise, and more. While not required by law, general liability is the most common type of business insurance because it protects from a variety of third-party claims and lawsuits.
Common professions that purchase general liability insurance include:
In some cases, employers or clients might require you to carry a certain amount of general liability before you can work for them. Read through your contracts carefully to make sure you select the right limits when getting a general liability insurance quote.
General liability insurance for contractors
Contractors typically need some form of business liability insurance to protect from risks that arise during their work. Matching liability coverage to your exposure can give peace of mind against unexpected lawsuits.
For example, if a pedestrian trips over tools a landscaping company left on the sidewalk, a general liability insurance policy can help pay their medical expenses and the business’s legal costs.
You can buy general liability insurance through the Progressive Advantage® Business Program. We can also help qualifying contractors get blanket additional insured coverage, which extends your existing liability insurance to other entities. Some contracts and employers require this general liability endorsement.
General liability insurance cost
In 2023, the national median cost of general liability insurance through Progressive was $59 per month. The average price was $80.
Most customers find their monthly premium to be closer to the median price because expensive outliers often drive up the average cost. Your rate will depend on specific features of your business, such as your profession and number of employees.
Discover more about general liability insurance cost and learn money-saving tips to help you find the best combination between price and protection for your business. Call us or start a quote online to get a customized general liability policy.
Is general liability insurance required by law?
No, but failing to carry general liability insurance could result in you having to pay for all the expenses related to a claim against your business. For example, while visiting your office a client slips on a rug and breaks their hip. Without general liability insurance, you could be solely responsible for all the medical bills and legal fees. So, even though it’s not required by law, it should be a priority for your business.
Does general liability insurance have a deductible?
Yes. You choose the amount of your general liability deductible when you get a quote. A deductible is a fixed out-of-pocket expense you agree to pay before your coverage starts to pay.
Does general liability insurance cover theft?
General liability insurance only pays for third-party damages, not yours. You’re considered the “first party.” The “third party” is the one that has a claim against you. This means general liability won’t cover your property or equipment against theft or damage.
To protect your property, we offer business personal property coverage as a part of a business owners policy.
Is general liability insurance tax deductible?
Yes. Since general liability premiums are considered “a cost of doing business,” they usually can be written-off at tax time. That said, it’s a good idea to consult a tax professional to make sure.
Does general liability cover professional mistakes?
No. General liability only provides coverage for claims against you by others for their bodily injuries or damage to their property. To protect from claims against you for professional neglect or mistakes, you need to have professional liability insurance.
What is a certificate of insurance?
A certificate of insurance (COI) is an official document that lists all coverages and limits on an insurance policy. Essentially, it proves that you have insurance and details your policy coverages and limits.
Can Progressive help me get general liability insurance in my state?
Yes. Progressive can help you get business insurance, including general liability, in all states except Hawaii. Browse by state.
Can high-risk businesses get general liability insurance?
Yes. High-risk businesses can get general liability insurance in a specialty market called excess and surplus lines (E&S). E&S insurance provides coverage for businesses the standard market doesn’t protect.
Does a limited liability company (LLC) need general liability insurance?
It depends. While not legally required, LLCs might need general liability insurance to fulfill certain contracts, such as a lease. Regardless, it’s a good idea to have a general liability policy to protect against lawsuits and expensive claims against your business.
Learn more about business insurance for LLCs.
