General Liability Insurance
What is General Liability Insurance Coverage?
A general liability insurance policy — also known as business liability insurance — protects businesses from claims that result from normal business operations. Get a business liability insurance policy for protection from bodily injuries, medical payments, advertising injuries, and more.
GEICO Insurance Agency can help small business owners and contractors get the coverage they need with a general liability insurance quote.
What Does General Liability Insurance Cover?
This liability insurance protects your small business from claims that occur during your normal business operations, such as:
- Property damage - protecting you if your business activities cause damage to someone else's property.
- Physical injury - ensuring coverage for medical expenses and potential legal claims resulting from injuries to third parties.
- Defense costs - covering legal fees and expenses if your business faces a lawsuit.
- Personal and advertising injury - providing coverage for claims involving defamation, trademark or copyright infringement, and deceptive or misleading advertising practices.
- Damage to premises rented to you – protects against certain damage to spaces your business leases.
What General Liability Insurance Does Not Cover?
General liability insurance protects your business from many common third-party claims, but it doesn’t cover everything. Understanding what’s excluded can help you determine whether you need additional coverage. General liability insurance typically does not cover:
- Theft of your own business property – Damage or theft of equipment, tools, or inventory usually requires commercial property insurance or a business owner’s policy (BOP).
- Professional mistakes or bad advice – Claims related to errors, negligence, or failure to deliver professional services are typically covered by professional liability insurance.
- Employee injuries – Workers’ compensation insurance is generally required to cover medical expenses and lost wages for injured employees.
- Damage to property you own – General liability covers damage to other people’s property, not your own.
- If your business has exposures beyond third-party injury or property damage, GEICO Insurance Agency can help you explore additional coverage options.
How Much is General Liability Insurance?
The cost of general liability insurance is based on your specific business needs. Your business is unique, and so are the risks. Factors that influence the cost include:
- Industry and type of work - certain professions or services carry higher levels of risk.
- Location and state requirements – insurance costs can vary depending on where your business operates, such as state regulations, local legal environments, and regional claim trends, all influencing pricing.
- Number of employees - larger teams typically increase the potential for general liability claims.
- Coverage limits selected – higher liability limits generally increase premiums, as the insurer may be responsible for paying more in the event of a covered claim.
- Claims history – a history of prior claims may affect your premium. Businesses with fewer past claims may present a lower risk profile compared to those with multiple claims.
GEICO Insurance Agency can help you get an insurance policy with the right coverage at a great price. Start your general liability insurance quote now.
Does General Liability Insurance Have a Deductible?
Some general liability policies include a deductible, which is the amount you pay out of pocket before insurance coverage applies to certain claims. The deductible amount is typically selected during the quoting process.
Choosing a higher deductible may lower your premium, while a lower deductible may reduce out-of-pocket costs if a claim occurs. Reviewing deductible options can help you balance affordability and financial risk.
General Liability Insurance Coverage Terms to Know
Property Damage
Protects you from claims costs up to your coverage limit if you damage someone else's property.
Medical Payments
Covers expenses for accidents that happen on your premises or as a result of your operations, such as a customer slipping on a wet floor—regardless of fault.
Personal & Advertising Injury
If you're sued for libel and slander, this could provide coverage for those claims.
Who Needs General Liability Insurance Coverage?
Many clients, landlords, and vendors require businesses to carry general liability insurance before signing contracts. Contractors, retail businesses, food vendors, and service providers often need proof of coverage to secure jobs or permits. Other businesses that use general liability insurance include:
- Artisan contractors
- Small business owners
- Landscaping companies
- IT contractors
- Real estate agents
- Consultants
- Marketing agencies
- Janitorial services
- Photographers
- Fitness professionals
- And more
Check out our insurance for small business page to learn about small business coverages. If you still need guidance on whether general liability insurance is right for you, we're here to help. Contact our licensed agents with any of your concerns or questions.
What Is a Certificate of Insurance (COI)?
A Certificate of Insurance (COI) is a document that proves your business has active insurance coverage. It lists key details such as your coverage limits, policy effective dates, and the types of coverage included. You may need a COI when:
- Signing a lease
- Bidding on a contract
- Working with a client who requires proof of insurance
- Applying for certain licenses or permits
Having access to your certificate of insurance can help you demonstrate professionalism and meet contractual requirements quickly.
Why is General Liability Insurance Important for Businesses?
General liability insurance builds client trust by showcasing your commitment to responsibility and professionalism. It demonstrates to clients and partners that you are prepared to handle unexpected situations, giving you a competitive edge in securing larger contracts. General liability insurance also ensures compliance with legal and regulatory requirements, which is key to obtaining business permits or certifications.
General Liability Insurance for Contractors
Many contractors have business owners policies (BOP), but your business may not need all of the coverages that come with a BOP. If you don't require property insurance and aren't responsible for covering payroll or operating expenses, for instance, general liability insurance could be a better solution. These policies save you money by providing the risk protection you need without overwhelming you with the coverages you don't.
Does Your Company Need a Different Type of Liability Insurance Coverage?
Being properly insured with business liability insurance is the best way to protect your company. We're here to help. Here are a few examples of companies that may be better suited to our other business insurance products
- Your company provides professional services (e.g., education and training)
- You rent or own a storefront
- You use vehicles to transport goods, yourself, or employees
Explore Additional Coverage Options for Your BOP Insurance
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This 2-in-1 policy includes general liability plus protection for your property. It can cover:
- Business location, merchandise, store contents, and equipment
- Business interruption expenses and loss of income
- Cases where someone is hurt on your premises
Example: A fire damages your office. A BOP could cover repairs to your office and help pay your employees' wages while business is interrupted.
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We often recommend professional liability coverage to go with general liability or a BOP.
- This covers certain professional and personal services, in case you're sued for negligence or for the advice you give clients
- It's often known as Errors and Omissions Insurance
Example: A client sues a hair stylist for allegedly giving them the wrong cut and color. Professional liability insurance could cover legal defense costs.
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A personal auto policy is not enough to cover vehicles used for business. Commercial auto insurance can:
- Cover business uses that personal auto policies don't include
- Offer more liability coverage to protect you
- Includes cars, pickup trucks, box trucks, and more
Example: On a job site, a carpenter accidentally backs into the homeowner's car. Commercial auto insurance could cover the damage.
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Protects businesses from losses from computer-related attacks, such as malware, phishing, ransomware, or stolen personal data.
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Protection against claims of negligence of mistakes which cause bodily harm to another and is usually carried by:
- Physicians
- Nurses
- Physical Therapists
- Other medical professional
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Protects healthcare professionals against claims of injury and medical negligence.
Need to Speak With Us About General Liability Insurance coverage?
You can reach us at (866) 509-9444.
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Mon – Fri8:00 AM – 10:00 PM (ET)
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Sat9:00 AM – 5:30 PM (ET)
How to File a General Liability Insurance Claim
If a claim arises, it’s important to notify your insurance provider as soon as possible. Filing a general liability claim typically involves:
- Reporting the incident and providing basic details
- Submitting documentation, such as photos, invoices, or witness information
- Cooperating with any investigation related to the claim
After reviewing the information, your insurer will determine coverage based on your policy terms and conditions. Prompt reporting can help ensure the claims process moves efficiently.
General Liability Insurance: Frequently Asked Questions
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How can I manage my liability insurance policy?The Geico Insurance Agency makes it easy to talk directly with an insurance professional who can help you manage your general liability insurance policy.
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Do you sell other business insurance products?Yes! Whether you're a small business just getting started or looking for better insurance rates, GEICO Insurance Agency can help. Answer a few short questions about your business so we can help narrow down the search with you.
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Do you have any information about starting a new business?Sure, we do! Here are 6 smart tips about starting a new business.
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Is my small business properly covered?For most small businesses, general liability insurance is recommended. Beyond that, it depends on your unique situation. Common types of business insurance include workers' compensation, commercial auto, and/or professional liability insurance as well. Learn more about what insurance your business needs.
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Who is insured on a general liability policy?Those insured on a general liability policy typically includes the policyholder (usually a business or individual), employees of the policyholder while acting within their job duties, and sometimes even volunteers or subcontractors named in the policy. The specifics can vary depending on the policy's terms and conditions, but it generally covers those directly associated with the insured entity.
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Is general liability insurance tax deductible?Yes, in many cases, general liability insurance premiums can be tax-deductible as they are considered a legitimate business expense. However, tax regulations can vary, so it's best to speak with a tax professional to be sure you're eligible.
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What is the difference between General Liability Insurance and Professional Liability coverage?General liability insurance covers third-party claims related to bodily injury, property damage, or advertising injury, such as a customer slipping in your store. Professional liability insurance, on the other hand, protects against claims of negligence, errors, or omissions in the services you provide, such as giving incorrect advice or failing to meet contractual obligations. General liability focuses on physical damages, and professional liability addresses risks tied to the quality and performance of your professional work.
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What is an example of a liability insurance claim?An example of a liability insurance claim is a customer slipping on a wet floor in your store, resulting in an injury for which they seek compensation. General liability insurance would help cover the costs of their claim, including legal fees and settlements.
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Does general liability insurance cover theft?No. General liability insurance typically does not cover theft of your own business property. To protect equipment, tools, or inventory, you may need commercial property insurance or a business owner's policy.
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Does general liability insurance cover professional mistakes?No. Claims related to professional errors, negligence, or bad advice are usually covered by professional liability insurance, not general liability insurance.
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Does a limited liability company (LLC) need general liability insurance?General liability insurance is not typically required by law for an LLC, but many landlords, clients, and contracts require proof of coverage before doing business. Even if not legally required, it can help protect your company from costly third-party claims.
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How quickly can I get proof of insurance?Once coverage is active, you can typically obtain proof of insurance in the form of a certificate of insurance to share with clients, landlords, or partners.
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Is general liability insurance required by law?In most states, general liability insurance is not legally required. However, certain licenses, permits, contracts, or leases may require your business to carry coverage.
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How much is general liability for an LLC?The cost of general liability insurance for an LLC depends on factors like your industry, location, revenue, number of employees, coverage limits, and claims history. Because every business is different, premiums vary. The best way to determine your cost is to request a personalized quote based on your LLC's specific operations and risk profile.
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Can you get general liability insurance without an LLC?Yes. You don't need to form an LLC to purchase general liability insurance. Sole proprietors, independent contractors, and other business structures can obtain coverage to help protect against third-party injury or property damage claims related to their operations.
For online quotes:
When you click on "START QUOTE" and "Start your quote now", we gather some pieces of information and you may be taken to the website of one of the insurance companies with which GEICO Insurance Agency, LLC works, which website is not owned or controlled by GEICO. Each insurer has sole financial responsibility for its own products.
GEICO has no control over the privacy practices of these insurance companies and assumes no responsibility in connection with your use of their websites. Any information that you directly provide to one of these insurance companies is subject to the privacy policy posted on that insurer’s website. All business products offered are written on an admitted basis.
General Liability coverages are written through non-GEICO insurance companies and are secured through the GEICO Insurance Agency, LLC. The information you provide will be shared with our business partners so that they can return a quote. We can help you secure business insurance in all states except Hawaii.
Please note:
The above is meant as general information and as general policy descriptions to help you understand the different types of coverages. These descriptions do not refer to any specific contract of insurance and they do not modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages.