Compare business insurance quotes
Pick two or more companies to see rates where you live. Free, no obligation.
What general liability covers
| Covered | Example |
|---|---|
| Third-party bodily injury | A customer trips over a cable in your store |
| Third-party property damage | You spill paint on a client’s carpet while working |
| Medical payments | A visitor’s minor medical bills after a fall |
| Personal and advertising injury | A competitor sues over a claim in your ad (libel, slander, copyright in ads) |
| Legal defense and settlements | Lawyers’ fees and judgments for covered claims |
| Products and completed operations | Injury from a product you sold or work you finished (often included) |
What it doesn’t cover
- Your own property – needs commercial property or a BOP
- Employee injuries – needs workers’ comp
- Professional mistakes and bad advice – needs professional liability
- Business vehicles – needs commercial auto
- Data breaches – needs cyber insurance
- Intentional acts and contractual penalties
Limits explained
Policies have a per-occurrence limit (the most paid for one claim) and an aggregate limit (the most paid in a policy year). A common small-business setup is $1 million per occurrence and $2 million aggregate. Check contracts and leases, which often specify required limits and ask you to name the client or landlord as an additional insured. If you need more, a commercial umbrella policy adds limits on top.
Occurrence vs. claims-made
Most general liability policies are written on an occurrence basis: they cover incidents that happen during the policy period, even if the claim is filed years later. Claims-made policies, more common for professional liability, cover claims made while the policy is active.
What it costs
Insureon’s small business customers paid a median of $45 a month ($538 a year) in 2026. Price depends on your industry, location, revenue, number of employees, claims history and limits. A contractor or restaurant pays more than a home-based consultant. See our cost guide.
Certificates of insurance
Clients often ask for a certificate of insurance (COI) before work begins. Most insurers, especially online ones, can issue one quickly, and many let you add additional insureds yourself. Keep your policy active: a lapse can breach your contracts.
Do you need it?
Almost certainly, if you meet clients in person, visit their premises, rent space, sell products or advertise. Even home-based businesses usually need it, because homeowners policies generally exclude business liability; see our self-employed guide.
Frequently asked questions
What does general liability insurance cover?
Injuries and property damage your business causes to others, advertising injury such as libel, medical payments and legal defense.
How much is general liability insurance?
A median of $45 a month, or about $538 a year, for Insureon’s small business customers in 2026.
Is general liability insurance required?
Not usually by law, but clients, landlords, venues and licensing bodies often require it.
What limits should I choose?
$1 million per occurrence and $2 million aggregate is common for small businesses; check contracts for specific requirements.
Does general liability cover employee injuries?
No. Employee work injuries are covered by workers’ compensation.
Sources
- U.S. Small Business Administration – Get business insurance
- Insureon – Small business insurance costs (Feb 2026)
- Maine Bureau of Insurance – Insuring your home business
- NEXT Insurance – AM Best Superior rating (Sept 2025)
Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.