Liability insurance is there to help business owners reduce risks associated with product mistakes or injuries of customers. Liability insurance may also help to reduce the risks associated with customer-based lawsuits. This is a key coverage that is typically needed, and wanted, for all businesses. As a Keslar Insurance customer, we walk you through the types of liability coverage and the amounts you should have, in addition to finding a very competitive price for what you need.
General Liability Insurance – Frequently Asked Questions
- What is general liability insurance, and what does it cover?
General liability insurance protects your business from financial loss due to third-party claims of bodily injury, property damage, or personal/advertising injury. It helps cover legal defense costs, settlements, and medical expenses resulting from accidents connected to your business operations. - Who needs general liability insurance?
Nearly every business—regardless of size or industry—should carry general liability coverage. It’s especially critical for businesses with physical locations, public-facing services, employees on job sites, or customer interactions. - What is covered under “bodily injury and property damage liability”?
This covers situations where your business causes physical harm to someone or damages their property. For example, if a customer slips in your store or your employee breaks something on a job site. - What is “personal and advertising injury” coverage?
This includes non-physical claims like libel, slander, false advertising, or copyright infringement. For example, if you’re accused of defaming a competitor or using copyrighted content in a social media ad. - Is general liability insurance the same as professional liability insurance?
No. General liability covers physical and reputational harm, while professional liability (errors and omissions) covers financial harm caused by mistakes or negligence in providing professional services. - Does general liability insurance cover employee injuries?
No. Injuries to employees are typically covered under workers’ compensation insurance, not general liability. - Do I need general liability insurance if I work from home?
Yes. Even home-based businesses face liability risks—such as if a client visits your home and gets injured, or if you’re held liable for damage caused at a customer’s location. - Is general liability required by law?
It’s not legally required in most states, but it may be required by clients, landlords, lenders, or licensing boards in order to do business. - What are common exclusions in a general liability policy?
Common exclusions include:
- Professional services (requires professional liability)
- Employee injuries (requires workers’ comp)
- Auto-related incidents (requires commercial auto)
- Intentional acts
- Contractual liability not assumed in a covered contract
- How much general liability insurance do I need?
Most small businesses start with $1 million per occurrence and $2 million aggregate limits. However, your needs may vary based on your industry, risk exposure, and contractual obligations. An agent can help assess the right coverage.
