General Liability Coverage Guide

What General Liability Covers

General Liability insurance is often called the foundation of business insurance. It protects your business from financial loss when you're held legally responsible for bodily injury, property damage, or personal injury to third parties. Nearly every business needs this coverage, regardless of size or industry.

• Bodily injury to customers, vendors, or other third parties
• Property damage caused by your business operations
• Personal injury including slander, libel, and false advertising
• Medical payments for minor injuries regardless of fault
• Legal defense costs even if the lawsuit is groundless

Understanding Policy Limits

General Liability policies have two key limits: per-occurrence and aggregate. The per-occurrence limit is the maximum the policy will pay for any single claim. The aggregate limit is the total amount available for all claims during the policy period. Choosing appropriate limits depends on your industry, contract requirements, and risk tolerance.

Products & Completed Operations

This coverage extension protects against claims arising from products you've sold or work you've completed. For contractors, completed operations coverage is critical—it responds to claims that arise after you've finished a project and left the jobsite. For manufacturers and distributors, products liability covers claims from defective products.

Additional Insured Endorsements

Many contracts require you to add other parties as additional insureds on your General Liability policy. This extends your coverage to protect them for claims arising from your work. Understanding how additional insured endorsements work helps you comply with contractual requirements while managing your coverage properly.

• Landlords often require additional insured status in lease agreements
• General contractors require it from subcontractors
• Property owners require it from service providers
• The endorsement only covers claims arising from your operations
• Primary and non-contributory wording may also be required

When General Liability Isn't Enough

While General Liability is essential, it doesn't cover everything. Professional errors require Professional Liability insurance. Employee injuries are covered by Workers Compensation. Vehicle accidents need Commercial Auto coverage. And for catastrophic claims that exceed your General Liability limits, a Commercial Umbrella policy provides an additional layer of protection.