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General Liability Insurance
Help protect your business when everyday work leads to an injury or damage to someone else’s property.
- In short
- General liability is about injury or damage your business causes to people outside it, not your own property, your employees, or the quality of your advice.
- Who or what is protected
- Your business, against covered claims by customers, visitors, and other third parties.
- Where it stops
- Physical injury and property damage to others, not financial harm from advice.
What general liability is for
This guide helps you tell whether an allegation belongs under general liability, and recognise when it belongs somewhere else.
Policy background and wording
Commercial general liability (CGL) addresses certain claims that your premises, operations or completed work caused bodily injury or property damage to someone outside your business.
It may help with defense and covered settlements or judgments. Limits, exclusions, and the treatment of defense costs matter; a certificate alone does not change the policy.
General is not professional
A visitor injury and a client’s financial loss from advice are different exposures. Review general liability and E&O separately.
Who typically looks at it
- Retailers and shops with foot traffic
- Contractors and trade businesses working on client property
- Restaurants, cafes, and hospitality venues
- Salons, studios, and personal-service providers
- Consultants and offices that host clients on-site
How it works
Who was harmed, and how, decides where to look
Six hypothetical events. Three point to general liability; three point to other policies.
Read the diagram as text
- A visitor slips on a freshly mopped floor: General liability (Third-party injury, property damage, personal, and advertising injury).
- Your crew breaks a fixture in a client’s office: General liability (Third-party injury, property damage, personal, and advertising injury).
- A competitor says your ad copied its slogan: General liability (Third-party injury, property damage, personal, and advertising injury).
- An employee is hurt lifting stock: Workers compensation (Your own employees’ work injuries).
- A client says your advice cost them money: Professional liability (Financial harm from advice or services).
- A company-owned van causes a crash: Business auto (Liability from owned vehicles).
Terms on this page
- Third party
- Someone outside your business, such as a customer, visitor, or client, who alleges you caused injury or damage.
- Products-completed operations
- Claims tied to your finished work or products after the job is done.
- Personal and advertising injury
- A separate section for certain libel, slander, or copyright allegations in advertising.
- Medical payments
- Minor third-party injury costs paid regardless of fault, up to a sub-limit.
Look deeper
Does a certificate of insurance change my coverage?
No. A certificate shows a policy exists; it does not change the policy.
What to check: Read the additional insured endorsement a contract asks for, not just the certificate.
Do defense costs use up my limit?
The treatment of defense costs matters and depends on the policy.
What to check: Ask whether defense is inside or in addition to the limits on your form.
Is there one legal requirement for general liability?
Leases, client agreements, and licences may call for it. Check the requirements that apply to your work rather than assuming one national rule.
What to check: Gather each lease and contract that names limits or additional insureds.
General liability or professional liability?
The same client can bring either kind of claim. What is alleged decides which policy is the starting point.
| General liability | Professional liability (E&O) | |
|---|---|---|
| What is alleged | Bodily injury or property damage to others | Negligent advice, errors, or omissions in professional services |
| Typical harm | A physical injury, a broken fixture | A financial loss, such as a missed deadline |
| Common timing basis | Ask your agent which basis your form uses | Commonly claims-made, so retroactive dates matter |
| Often required by | Leases, client agreements, licences | Client contracts for professional work |
Scroll sideways to compare all columns.
What it may cover, and where it stops
Exact terms depend on the carrier, policy form, endorsements, and applicable law. Review the wording with your agent.
May cover
- Third-party bodily injury, such as a customer slip-and-fall on your premises
- Third-party property damage caused by your operations
- Products-completed operations claims tied to your finished work
- Personal and advertising injury, such as certain libel, slander, or copyright allegations in advertising
- Legal defense costs, even for claims that are ultimately groundless, subject to policy terms
- Medical payments for minor third-party injuries, regardless of fault, up to a sub-limit
Commonly excluded or limited
- Injuries to your own employees, which workers compensation generally addresses
- Damage to your own building, equipment, or inventory
- Professional mistakes or bad advice, which professional liability addresses
- Liability arising from owned autos, which business auto coverage addresses
- Intentional or criminal acts
- Liability above your selected limits
Working through an example
Hypothetical and for illustration. Whether a real loss is covered depends on the facts and the policy.
- What happens
Damage at a client site
While working in a client’s office, your contractor knocks over and breaks an expensive fixture.
- Which part is relevant
The third-party property damage part of general liability is the relevant starting point.
- What could change the outcome
- The claim must arise from your operations, and the damaged property must belong to someone else.
- Policy limits, the deductible, and exclusions apply.
- Damage to your own tools or equipment is not a general liability matter.
Other situations
Advertising injury allegation
A competitor alleges your ad copied a protected slogan. The personal and advertising injury section may help with defense, subject to the terms and exclusions of the policy.
Before you talk to an agent
What underwriters usually weigh
- Industry and the risk profile of your operations
- Annual revenue and payroll
- Selected per-occurrence and aggregate limits
- Claims history and years in business
- Location and whether the public visits your premises
Other questions owners ask
Is general liability insurance required by law?
Leases, client agreements, and licensing requirements may call for general liability. Check the requirements that apply to your work and location rather than assuming one national rule.
What limits should my business carry?
Common selections include per-occurrence and aggregate limits, but the right amount depends on your contracts, industry, and exposure. The Southern Agency can help you evaluate appropriate limits.
Can general liability be bundled with property coverage?
Yes. Many small businesses combine general liability and commercial property into a Business Owners Policy, which can be more convenient and cost-effective.
Talk through general liability insurance with an agent
We compare carriers, explain the wording, and help you choose limits that fit how your business actually runs.
