Do I need general liability insurance for my business?

General liability insurance requirements vary by state and industry. Landlords frequently require business tenants to have general liability insurance, and coverage may be required by clients in order for you to work on their premises. However, even if general liability insurance isn’t mandatory for you, the costs associated with an incident or lawsuit can quickly add up and threaten the financial stability of your company. General liability insurance provides protection and peace of mind.

How do I prove I have general liability insurance?

A Certificate of Insurance (COI), which you can obtain at any time from our website as a policyholder, proves that you have general liability insurance and lists the coverages and limits.

Does general liability insurance cover lawsuits?

Yes, general liability insurance helps cover legal fees and settlements, but only if you’re sued for specific reasons as outlined in the policy. For example, you aren’t covered by your general liability policy if an employee sues you or if you’re sued over a professional error.

What is primary insurance versus excess insurance?

A primary insurance policy, like a general liability policy, kicks in first to cover a claim or loss. Excess insurance, like an umbrella policy, provides additional coverage for the same claim once the limits of the primary policy have been reached. For example, if you are found liable for $125,000 and your primary insurance policy has a $100,000 limit, an umbrella policy may cover the remaining $25,000.

Does general liability insurance cover errors and omissions?

No, it doesn’t. You’ll want <a href="/small-business-insurance/professional-liability-insurance" data-qa="pl-link">professional liability (errors & omissions) coverage</a> from biBERK if your business provides professional advice or services.

Does biBERK provide general liability insurance in my state?

We offer general liability insurance in many states. Check out our <a href="/where-we-insure/state-coverage-map">coverage map</a> for details.

General Liability Insurance From biBERK

out of 5 customer review rating and 200,000+ policies sold.

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What is General Liability Insurance?

If you want to ensure that your small business has financial protection from unforeseen claims, general liability insurance is a smart investment. While it’s not always required by law, liability insurance for small businesses may be required by certain contracts or lease arrangements. With a general liability insurance policy from biBERK, it’s easy to get protection from the costs of:

Property Damage

When customer property is damaged by an employee, your general liability insurance coverage may pay for a replacement. For example: Your contractor accidentally sets fire to a building they are working in, and repair costs will exceed $150,000. Now, you may be liable to pay for the damages and construction costs. With small business liability insurance from biBERK, you would likely have help covering the costs of those damages.

Bodily Injury

If someone other than an employee is injured on your property, general liability insurance coverage can take care of medical expenses plus legal expenses and damages.

Product Liability

If products developed or sold by your business harm people or property, small business liability insurance can pay legal expenses associated with product liability lawsuits and medical expenses if an injury occurs.

Libel, Slander, and Copyright Infringement

General liability insurance for small businesses can pay for lawsuit expenses from personal and advertising injury. Advertising injury can include disparaging another business in your advertisements, stealing an advertising idea, and more.

Man pointing at the ipad a lady is holding while he holds a box which will need to be placed somewhere indicated by the iPad

Why do I Need General Liability Insurance?

It’s just common sense—and good financial sense too. Even one lawsuit for bodily injury or property damage is often enough to bankrupt a small business. General liability insurance provides you with the coverage you need to pay for most damages, injuries, and medical costs related to accidents that could happen to your customers. Small business liability insurance also helps cover legal fees and settlements if you’re sued.

Business Liability Insurance for Your Company

Let’s say you own a restaurant. One morning, a delivery driver slips and falls on a wet floor in your kitchen, breaking his arm. He sues the restaurant for $75,000 to pay for medical costs, wages, and suffering. If you have a business liability insurance policy with adequate coverage, you won’t have to pay all of those costs yourself.

How do I Know if I Need a Liability Insurance Policy?

At biBERK, we understand small business owners and the challenges you face every day. We also know that no two businesses are completely alike, so we don’t try to put you in a one-size-fits-all liability insurance policy.

When you get a quote for small business insurance from biBERK, we look at a number of factors to determine the best level of coverage for you, including your industry, business size, and more. We believe in the right liability insurance for small businesses, and our goal is to give you only the coverage you need now—and we can grow that coverage as your business grows.

Coverage Map

It's a Good Idea to Have a General Liability Insurance Policy if Your Small Business:

Works face-to-face with clients or customers
Must have general liability insurance before entering into a contract
Represents your client’s business
Uses third-party locations for your business activities
Uses contractors
Sells a physical product to customers

Industries That Typically Need Business Liability Insurance Include:

Retail stores and services
Professional services
Contractors
Auto service and repair
Wholesalers and distributors
Transportation
Recreation
Food service
Healthcare

What if I’m a Contractor or I Operate My Business out of My Home?

You could still benefit from a general liability insurance policy as a freelancer, contractor, or home business owner because you face many of the same risks as brick-and-mortar businesses. General liability insurance for business requirements can be important because:

It Provides Financial Protection

Freelancers, contractors, and home business owners can be sued for damaging client property or causing injury. A general liability insurance policy can cover related costs.

It May Be Required By Law

State and federal law requires general liability insurance for independent contractors in certain industries such as construction.

Clients Require Insurance

Some companies require that contractors and freelancers have insurance because it protects the company from financial loss due to their actions.

How Much is General Liability Insurance?

Premiums start as low as $27.50 per month. With biBERK, you get to avoid broker fees and other unnecessary fees, which can save you up to 20%. It's affordable coverage that protects your small business from financial harm and can help you sleep better at night.

Customizing Your General Liability Insurance Policy With Endorsements

Your commercial general liability insurance policy can be customized by adding what are called endorsements. An endorsement can either enhance or modify the coverage, depending on your requirements. Some of the most common general liability insurance policy endorsements include:

Cyber

Cyber liability add-on insurance protects your business in the event of an incident like a data breach regarding private customer, employee, or client information. It can also provide coverage for regulatory action defense if a government agency requires you to appear in court.

Hired and Non-Owned Auto Liability

Hired and non-owned auto liability add-on coverage provides protection when you or an employee of your business is driving a rented, leased, hired, or borrowed vehicle for business purposes. A common example is an employee who makes deliveries using their own vehicle. Adding this endorsement to a general liability policy or business owners policy (BOP) means you don’t need a separate commercial auto policy for this purpose.

Employment-Related Practices Liability

This add-on protects your business in case of a claim or lawsuit related to inappropriate workplace behavior (e.g., wrongful termination, harassment, or discrimination).

Employee Benefits Liability

Employee benefits liability add-on insurance provides coverage in the event of errors or omissions in how you administer your employee benefits program. For example, it can protect you if you fail to add an employee to your medical insurance and the person is later denied coverage by the plan.

Contractors Installation, Tools & Equipment

This add-on insurance covers your business's property, tools, equipment, etc. while at a job site, in transit, temporarily in storage, or during installation.

Liquor Liability

Liquor liability add-on insurance covers liability your business may incur from the selling, serving, or furnishing of alcoholic beverages. For example, it can provide coverage if your business is found liable because you served a minor or someone visibly intoxicated who subsequently gets into an automobile accident. This add-on insurance can be helpful for any business that sells alcohol including restaurants, convenience stores, and liquor stores.

Our commercial general liability insurance experts can help you understand whether you need endorsements for your general liability insurance policy.

Why biBERK for General Liability Insurance?

We're the experts when it comes to insuring small businesses.

Save time.

Get a quote entirely online or speak with one of our insurance experts right away for help getting a quote, buying a policy, or answering any questions you may have.

Save money.

We insure your small business directly, without a middleman or insurance broker, so we pass that savings on to you—up to 20% less than policies with other insurance companies.

Experienced.

We're part of Warren Buffett's Berkshire Hathaway Insurance Group with millions of satisfied customers, more than 75 years of insurance experience, and $52.2 billion in paid claims in 2023.

General Liability Insurance Frequently Asked Questions (FAQs)

Our insurance experts are always happy to assist you, but below are answers to some of the questions we’re asked most frequently about general liability insurance.

What is general liability insurance?

General liability insurance protects your business from claims related to risks like damage to the property of others, bodily injury to non-employees, product liability, libel, slander, and copyright infringement.
Do I need general liability insurance for my business?

General liability insurance requirements vary by state and industry. Landlords frequently require business tenants to have general liability insurance, and coverage may be required by clients in order for you to work on their premises. However, even if general liability insurance isn’t mandatory for you, the costs associated with an incident or lawsuit can quickly add up and threaten the financial stability of your company. General liability insurance provides protection and peace of mind.
How do I prove I have general liability insurance?

A Certificate of Insurance (COI), which you can obtain at any time from our website as a policyholder, proves that you have general liability insurance and lists the coverages and limits.
Does general liability insurance cover lawsuits?

Yes, general liability insurance helps cover legal fees and settlements, but only if you’re sued for specific reasons as outlined in the policy. For example, you aren’t covered by your general liability policy if an employee sues you or if you’re sued over a professional error.
What is primary insurance versus excess insurance?

A primary insurance policy, like a general liability policy, kicks in first to cover a claim or loss. Excess insurance, like an umbrella policy, provides additional coverage for the same claim once the limits of the primary policy have been reached. For example, if you are found liable for $125,000 and your primary insurance policy has a $100,000 limit, an umbrella policy may cover the remaining $25,000.
Does general liability insurance cover errors and omissions?

No, it doesn’t. You’ll want professional liability (errors & omissions) coverage from biBERK if your business provides professional advice or services.
Does biBERK provide general liability insurance in my state?

We offer general liability insurance in many states. Check out our coverage map for details.

Get a General Liability Insurance Quote Today

Learn more about general liability insurance for business needs today.

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