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General Liability Insurance

A normal business day can turn into a legal problem in minutes: a customer slips, a delivery driver claims your team caused damage, a subcontractor’s work triggers a claim, or an ad or online post sparks an allegation. General liability insurance (CGL) is designed to help pay for covered bodily injury, property damage, and certain personal/advertising injury claims—and to provide legal defense in many of those situations. This page makes the risks concrete, explains how CGL behaves under stress, and helps you start a quote fast.

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What actually disrupts a business after a liability claim

Liability claims aren’t just “accidents.” They are time, documentation, customer relationships, legal costs, and—often—the question of who is responsible. These are the scenarios that most often turn into expensive, distracting, drawn-out problems.

BI

Customer / visitor injury

Slip-and-falls, trip hazards, falling objects, and “premises” allegations that can trigger medical bills and lawsuits.

PD

Property damage to others

Damage at a client site, in a tenant space, or during operations—often with disputes about scope, cause, and timing.

PPC

Products & completed operations

Claims alleging your work or product caused harm after delivery or completion—common for contractors, installers, manufacturers, and service pros.

A&P

Advertising / personal injury allegations

Claims involving defamation, copyright-like disputes, or reputation harm—often triggered by marketing, social media, or competitor conflicts.

Not every business faces each exposure equally, but almost every business has at least one “public contact” or “property damage” pathway. The goal is matching coverage to your real operations—not to a generic checkbox list.

Out-of-pocket reality

How CGL works when a claim happens: limits, defense, and the part nobody expects

The most expensive part of many liability claims is not the final settlement—it’s the defense, the process, and the time spent responding. This section explains the mechanism of coverage in plain terms so you can compare policies realistically.

What it’s for

What CGL is designed to cover (at a high level)

General liability insurance is commonly intended to respond to covered claims that you caused bodily injury or property damage to others. Many policies also include “personal and advertising injury” protections for certain allegations tied to business communications.

Because liability is about allegations, a major value is often legal defense—help paying attorneys and handling the claim process—when the situation fits the policy. This is general information and not a guarantee of coverage for any particular loss.

How it feels

What happens after an incident, demand, or lawsuit

Real claims often start as a complaint, a request for payment, or a demand letter. Then comes documentation: what happened, when it happened, who was involved, contracts, invoices, photos, incident reports, and sometimes tenant or jobsite requirements.

Two policies can look “similar” on the surface but behave differently under stress: the limits, whether defense costs are inside or outside those limits, whether there is a deductible or self-insured retention, and how endorsements like additional insured status apply can change outcomes.

If you want help comparing coverage so you’re not accidentally comparing different limits, defense setups, or contract requirements, call 1-833-339-1186. If you’d rather start online, you can start your quote in minutes.
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Everyday language

Common business insurance terms (translated into what they really require)

Businesses don’t buy CGL in a vacuum. They buy it because someone requires it—or because they’ve seen what claims do. This is the quick translation layer that prevents “we thought we had it” moments.

Certificate of Insurance (COI)

A COI is evidence of coverage at a point in time. It’s not the policy itself, and it doesn’t automatically change what’s covered.

Additional insured

Often required by landlords, property managers, GCs, and clients. It’s a policy endorsement, and the wording can materially change coverage.

“Primary & non-contributory”

Contract language asking your policy to respond first in certain scenarios, without seeking contribution from the other party’s insurance.

If you have a contract or COI requirement, it’s usually faster to quote correctly when we know the exact wording being requested. Bring it to the call and we’ll translate it.

Clarity

Common misunderstandings (and the practical clarification)

CGL is one of the most common business policies, which makes it easy to assume it covers “anything that happens.” The goal is reducing costly assumptions—especially when contracts, landlords, or job sites are involved.

The assumption
The reality

“General liability covers my employees if they get hurt.”

People hear “liability” and assume any injury is covered.

Employee injuries are usually a different lane.

Workers’ compensation is typically the core policy for employee injuries. CGL is usually oriented toward third-party claims (customers, visitors, other businesses).

“If I have a COI, I’m automatically compliant with the contract.”

COIs feel like a “pass” because they’re what vendors request.

A COI is evidence, not the endorsement.

Contract requirements often need specific endorsements (like additional insured wording). The policy language matters more than the certificate.

“My policy covers damage to my own tools, equipment, or building.”

People assume “business insurance” is one big bucket.

CGL is not primarily a property policy.

Business property, inland marine, and equipment coverage are usually separate. CGL is focused on your liability to others.

“My subcontractor’s work is fully my subcontractor’s problem.”

Projects involve multiple parties, so blame feels clear.

Claims often target the person with the contract.

Even if a subcontractor caused the issue, the claim may be brought against the business the customer hired. Risk transfer and additional insured structures become important.

“My policy will pay anything if someone sues.”

Lawsuits feel like a coverage trigger by themselves.

Allegations still have to fit the policy.

Coverage depends on the claim type, exclusions, endorsements, and the facts alleged. Defense and settlement are policy-driven, not lawsuit-driven.

Want to sanity-check what a quote is actually saying in plain terms? Call 1-833-339-1186.
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Frequently Asked Questions

These are general answers to common questions. Details vary by industry, state, and carrier. If you want to talk with a licensed agent about options and pricing, call 1-833-339-1186.
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What does “general liability” typically cover?
It commonly addresses covered third-party bodily injury and property damage claims tied to business operations, and may also include certain personal/advertising injury protections. Coverage depends on policy form, endorsements, and the facts of the claim.
Do I need CGL if I work from home or I’m a small operation?
Many small businesses still have third-party contact: client visits, delivery exposure, work performed at a customer site, or online advertising and content. The size of the business doesn’t always correlate with the severity of a single liability claim.
How do limits work (per occurrence vs aggregate)?
Many policies have a “per occurrence” limit for a single incident and an “aggregate” limit that caps the total paid for covered claims during the policy term. Exact structures vary.
What is “products & completed operations” coverage?
It generally relates to claims alleging bodily injury or property damage caused by your product or your work after it’s been completed or put to use. It’s a key area for contractors, installers, manufacturers, and certain service businesses.
Is a deductible always part of CGL?
Not always. Some policies have no deductible for many liability claims, while others use deductibles or self-insured retentions (SIRs), especially in certain industries or higher-limit structures. The out-of-pocket component depends on the carrier and program.
What is an “additional insured,” and why do clients request it?
It’s an endorsement that extends certain protections to another party (like a landlord or general contractor) under your policy, usually tied to the work you’re doing for them. The wording and scope matter.
Does a COI change my coverage?
A certificate of insurance is typically evidence of coverage; it does not usually alter policy terms by itself. If a contract requires specific wording, endorsements are often needed.
Why do two businesses with “similar work” get very different quotes?
Pricing can depend on operations and classifications, payroll/revenue, claims history, subcontractor use, jobsite requirements, locations, products, contract language, and industry-specific loss trends—plus state and carrier underwriting rules.
How fast can I get proof of insurance for a landlord or client?
Often quickly after purchase, but timing depends on how the policy is issued and whether endorsements are needed. If you have a deadline and specific wording, calling is often fastest.
What other coverages are commonly bundled with CGL?
Business property, business auto, workers’ compensation, professional liability (E&O), cyber, umbrella, and inland marine/equipment coverage are common companions. What you need depends on operations and contracts.

Get started

Start online, or call to speak with a licensed agent about options and pricing.
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Related options people ask about

CGL is often the foundation, but many businesses need adjacent coverages to close common gaps and satisfy contract requirements.

Umbrella / excess liability

Higher limits above underlying policies—often requested by landlords, municipalities, and larger clients.

Professional liability (E&O)

For claims alleging advice, design, or professional services caused financial harm—often not the same lane as CGL.

Workers’ compensation

Commonly required when you have employees, and central to handling employee injury exposures.

Additional resources

Want to go deeper? These guides expand on common liability scenarios and contract requirements businesses run into.