Effective October 1, 2023, Rooney Insurance will be located at 5100 E Skelly Dr, Suite 1010 in Tulsa, Oklahoma
Effective October 1, 2023, Rooney Insurance will be located at 5100 E Skelly Dr, Suite 1010 in Tulsa, Oklahoma
Running a business comes with countless responsibilities, and one of the most critical is protecting your company from unexpected risks. Accidents, property damage, or legal claims can occur without warning, and without the proper coverage, even a single incident could threaten your financial stability. That’s where general liability insurance comes in—a foundational policy that every business owner should understand.
In this article, we’ll explain what general liability insurance is, what it covers (and doesn’t cover), who needs it, and how to get the right policy for your business.
General liability insurance is a type of commercial insurance that helps protect your business from claims involving bodily injury, property damage, and personal or advertising injury. It covers legal costs, settlements, and medical expenses that may arise from third-party incidents connected to your business operations.
It’s often the first line of defense in your business insurance plan and is typically required when signing leases, working with vendors, or applying for contracts.
Here are the main areas general liability insurance typically includes:
If someone is injured on your business premises (e.g., a customer slips on a wet floor), general liability insurance helps cover their medical costs and potential legal claims.
If you or your employees accidentally damage someone else’s property while conducting business—like breaking a client’s window during a service call—your policy can help pay for the repair or replacement.
This includes claims of libel, slander, copyright infringement, or misleading advertising. For instance, if a competitor sues you for using similar branding, your insurance may cover legal expenses.
If a covered claim results in a lawsuit, your insurance will help pay for attorney fees, court costs, and settlements or judgments, up to the policy limit.
While general liability insurance provides broad protection, it doesn’t cover every type of risk. Exclusions typically include:
Employee injuries (covered under workers’ compensation insurance)
Professional errors or omissions (covered under professional liability insurance)
Commercial vehicle accidents (covered under commercial auto insurance)
Intentional acts or criminal behavior
Damage to your own business property (covered under commercial property insurance)
For full protection, businesses often need a combination of policies tailored to their specific industry and operations.
Nearly every business, regardless of size or industry, can benefit from general liability coverage. You likely need this insurance if you:
Own or lease a physical location
Work directly with clients or customers
Handle third-party property
Advertise or have an online presence
Attend trade shows or client sites
Employ staff who interact with the public
From contractors and consultants to retailers and restaurateurs, general liability insurance is considered essential for minimizing risk and demonstrating professionalism, if you own a business contact a Insurance Company and get more information.
The cost of general liability insurance depends on several factors, including:
Industry type
Business size and revenue
Location
Claims history
Coverage limits and deductibles
For small businesses, premiums typically range from $300 to $1,000 annually. High-risk industries like construction or manufacturing may pay more due to increased exposure.
When shopping for general liability insurance, consider the following:
Coverage limits: Make sure the limits match the scale and risk level of your operations.
Exclusions: Understand what’s not covered to avoid surprises later.
Additional endorsements: You may need to add endorsements for specific risks like cyber liability or product liability.
Reputation and service: Work with a trusted insurance company that provides responsive customer service and a strong claims-handling process.
General liability insurance isn’t just a safety net—it’s a strategic tool that protects your business’s reputation, assets, and future. Accidents and lawsuits are unpredictable, but having the right coverage ensures you’re prepared when the unexpected happens.
Whether you’re launching a startup or running an established company, investing in a general liability policy provides peace of mind so you can focus on growing your business with confidence.
