What this coverage is
Commercial general liability (CGL) insurance is one of the most widely carried business policies. It is designed to respond when your operations, premises, or completed work allegedly cause bodily injury or property damage to someone outside your business, such as a customer, vendor, or passerby.
A general liability policy generally pays for both defense costs and covered settlements or judgments, up to the limits you select and subject to policy terms. Many landlords, clients, and licensing bodies ask businesses to carry it before signing a lease or contract.
Who commonly needs it
Almost any business that interacts with customers, visits client sites, or produces work that others rely on commonly considers general liability coverage. It is often the first policy a new business buys.
Where this coverage commonly fits
Foundational — a starting point in many commercial insurance programs, regardless of industry. General liability is commonly the first coverage a business carries and is frequently required by leases and contracts.
- 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
What it 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
What it typically excludes
- 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
Hypothetical claim scenarios
These illustrative examples are for general understanding only. Coverage depends on the specific policy terms, conditions, and exclusions.
Customer slip-and-fall
A visitor slips on a freshly mopped floor and is injured. General liability may help respond to the resulting bodily-injury claim and associated defense costs, subject to policy terms.
Damage at a client site
A contractor accidentally knocks over and breaks an expensive fixture while working in a client's office. The policy may help cover the third-party property-damage claim.
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.
What commonly affects cost
- 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
How much does it cost?
On average, many businesses pay roughly $500–$1,500 per year for many small businesses for general liability insurance. That figure is a general national average only — your actual premium is set during underwriting.
- General Liability Insurance$500–$1,500 per year for many small businesses
These are general national averages shown for comparison only — not a quote. Actual premiums vary widely with underwriting and depend on the factors above and the specifics of your business, including size, revenue, location, claims history, and the limits you choose. See how we estimate costs.
Industries where this coverage is common
Coverage needs vary business to business — most companies consider this protection regardless of industry. These are simply the industries where we see it most often.
See how this coverage works in your industry
A few examples from the business types we cover — this coverage applies well beyond the industries shown here.
Don't see your business type? Browse all industries we cover — coverage recommendations are tailored to every operation.
Frequently asked questions
Is general liability insurance required by law?
General liability is generally not mandated by state law, but it is commonly required by landlords, clients, and contracts before you can lease space or begin work.
What is the difference between general liability and professional liability?
General liability commonly responds to physical injuries and property damage, while professional liability addresses claims of negligent advice, errors, or omissions in your professional services.
Does general liability cover my employees' injuries?
No. Employee work-related injuries are generally handled by workers compensation insurance, not general liability.
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.
How do I get a quote for this coverage?
Call The Southern Agency at 1-800-777-1872 or request a quote online, and an advisor can help tailor coverage to your business.
Related coverages
- Business Owners Policy A bundled policy combining general liability and commercial property coverage for many small businesses.
- Business Auto Insurance Liability and physical damage protection for vehicles used in business operations.
- Workers Compensation Insurance Coverage for employee work-related injuries and illnesses, often required by state law.
- Commercial Package Policy A flexible policy combining multiple commercial coverages for larger or more complex businesses.