What is General Liability Business Insurance?

As an owner, you have a lot of responsibility towards running your business smoothly and looking after the welfare of your employees. Even if you provide the best of working conditions and make sure that the quality of your products or services meet the set standards, you never know when things could go wrong. And this is where general liability business insurance comes into play. The following paragraphs will explain you how it can help you cover unforeseen costs, and thus, save you a fortune in the form of lawsuits or other damages.


Every business would want some kind of protection from any external entity filing a lawsuit against them due to services which they may not like. This insurance cover protects you not only against property damage and personal injury, but also against damages which you will have to incur due to legal costs. There are different types of such covers which you can avail and that depends on your business needs. The most common ones include general liability insurance, professional liability insurance, and product liability insurance.

General liability protects your business from advertising claims, property damages, and injury claims. Professional liability is beneficial for owners who provide some kind of services, and it protects against omissions, errors, malpractices, and negligence. On the other hand, product liability may be needed as it covers the enterprise against injury caused to a consumer using its products.

A general cover can be considered as the first line of defense which can protect your business against wrongdoings and negligence. If a person files a lawsuit against you, this insurance covers you against losses which you might incur. Moreover, it also covers against any bodily injury which may be caused to your employees. In case you have repaired something, say electrical appliances or done some plumbing operations, and if that breaks down again, the extra costs get covered. In addition to that, medical expenses of a person who is injured within your premises are covered as well.


There are several companies which provide such insurance, but you need to search for the best deal. Ideally, you should source quotes from several providers so that you can compare them and choose the best package.


The cost depends on the kind of business you have. Premiums are measured in terms of size (square foot) of the occupied premises or the amount you pay your employees. Moreover, it also depends on the risks which you want to cover. In case you have a home-based child care center, you may have to pay anywhere between USD 350 to 700 and at times even more per year. If you have a photography studio, the cost of premium varies in the range of USD 1000 to 1500.

Go through the fine print thoroughly so that you know all the terms and conditions before you sign the dotted line.