Commercial General Liability Insurance: Essential Protection for Your Business

Protect your livelihood from lawsuits, accidents, and third-party claims.

Running a business comes with risks. Whether you operate a retail store, work as a contractor, or consult from a home office, Commercial General Liability (CGL) insurance is the foundation of a comprehensive risk management plan. It protects your business assets when the unexpected happens.

What is General Liability Insurance?

Commercial General Liability insurance (often called "CGL" or "business liability insurance") protects your company if you are sued for causing injury or property damage to a third party.

In simple terms: If a customer slips in your store, or if you accidentally damage a client’s property while working on-site, this policy pays for the damages and your legal defense. Without it, you would have to pay these costs out of pocket, which can bankrupt a small business.

Who Needs Commercial General Liability Coverage?

Almost every business, regardless of size or industry, needs general liability coverage. It is specifically critical for:

• Contractors & Construction: Carpenters, plumbers, electricians, and handymen who work on client sites.

• Retail & Hospitality: Shops, restaurants, and cafes with high foot traffic (risk of slips and falls).

• Professional Services: Marketing agencies, IT consultants, and accountants.

• Landscapers & Cleaning Services: Businesses that operate on customer property.

• Real Estate Agents: Professionals who host open houses or meet clients in public.

(Even if you are a sole proprietor or freelancer, you likely need CGL to sign contracts with larger clients.)

Why Every Business Needs This Coverage

It isn't just about accidents; it's about the ability to operate. Here is why CGL is non-negotiable for modern businesses:

1. It is Required by Contracts and Leases

Most commercial landlords will not rent you office or warehouse space without proof of insurance. Similarly, if you want to bid on government contracts or work with corporate clients, they will require a Certificate of Insurance (COI) before you can start the job.

2. Lawsuits Are Expensive

Even if a lawsuit against you is frivolous or groundless, the cost to defend yourself is high. Attorney fees, court costs, and settlements can devastate your cash flow. CGL covers these legal defense costs so your business can keep running.

3. It Builds Credibility

Carrying insurance signals to your clients that you are a legitimate, responsible professional. It gives them peace of mind knowing that if something goes wrong, you have the backing to make it right.

What Does Commercial General Liability Cover?

A standard CGL policy typically covers four main areas of risk:

• Bodily Injury: Covers medical bills and legal fees if a non-employee is injured at your business or job site.

• Property Damage: Pays for repairs or replacement if you or your employee accidentally damages someone else's property.

• Personal & Advertising Injury: Protects you against non-physical claims, such as libel, slander, copyright infringement in advertisements, or invasion of privacy.

• Medical Payments: Covers immediate medical expenses for minor injuries to prevent lawsuits (e.g., an ambulance ride for a customer who fell).

What is NOT Covered?

• Employee Injuries: You need Workers' Compensation for this.

• Professional Mistakes: Errors in advice or services are covered by Professional Liability (E&O).

• Damage to Your Own Property: You need Commercial Property Insurance to protect your own gear and buildings.

• Auto Accidents: You need Commercial Auto Insurance.

Frequently Asked Questions About General Liability Insurance

How much does Commercial General Liability insurance cost?

The cost of General Liability insurance varies based on your industry, location, annual revenue, and the size of your staff. However, for many small businesses and contractors, premiums can be affordable, often ranging between 300and300and1,000 annually. High-risk industries (like roofing or construction) will generally pay higher premiums than low-risk industries (like consulting or photography).

What is the difference between General Liability and Professional Liability?

This is the most common confusion for business owners. Many business need both.

• General Liability (CGL) covers physical risks: bodily injury to strangers (slip and falls) and property damage.

• Professional Liability (also called Errors & Omissions or E&O) covers financial risks: claims of negligence, inaccurate advice, or failure to deliver a service as promised.

How much does it cost?

In most states, General Liability insurance is not mandated by law (unlike Workers' Compensation or Commercial Auto). However, it is effectively "mandatory" for doing business because landlords require it to sign a lease, and clients often require it before signing a contract.

.

Does General Liability cover employee injuries?

No. General Liability is strictly for "third-party" claims (people who do not work for you). If one of your employees gets hurt on the job, that claim must be handled through a Workers' Compensation policy.

How fast can I get a Certificate of Insurance (COI)?

In most cases, we can issue a Certificate of Insurance immediately after you bind your policy. This document is what you will hand to landlords or clients to prove that your business is insured and compliant.

What does "Claims-Made" vs. "Occurrence" mean?

These are the two types of CGL policies.

• Occurrence policies cover you for an incident that happened while the policy was active, even if the claim is filed years later (after you canceled the policy). This is the most common preference for small businesses.

• Claims-Made policies only cover you if the policy is active both when the accident happened and when the claim is filed..

  (We only offer what is best for our customer. We only offer occurrence policies)

Stop Shopping. Let Us Do the Heavy Lifting

Why spend hours calling different carriers? Enter your details below, and I will check rates with over 200 top-rated providers to find you the best deal.

One brief call could save you hundreds this year.

Phone

(888) 601-0088 Ext 108

Email

jesus@bearstarins.com

Prefer a call back?