What Is General Liability Insurance?

Commercial general liability insurance costs will vary depending upon your industry and the terms of your policy. For example, if you own a construction firm, your premiums will likely be higher than those of an IT consultant with a home office. Your cost for general liability insurance can be influenced by a number of other things, including:

• Risk exposure: Depending on the industry you operate in, your costs for commercial general liability insurance can be higher or lower than the average. 
• Risk management efforts: If you take precautions to guard against risk, such as installing security systems on your premises or providing training programs for your employees, your liability insurance premiums could be lower than the average.
• Location: Rates for commercial general liability insurance vary based on your state, your actual geographic location and where you conduct business.
• Business stability: The number of years you have been in business and your proven financial stability can lower your costs for commercial general liability insurance.
• Contractual relationships: If you are subcontracting your work out or hiring third parties to perform operations on your behalf, have third party contractors on your premises, or have leased or temporary employees, those relationships may affect your GL coverage rates.
• Claims history: Having previous liability claims will generally result in higher premiums for commercial general liability insurance.

Learn more about commercial general liability insurance with the information below or find an agent for a commercial general liability insurance quote.

A commercial general liability insurance policy accounts for your business being at fault for bodily injury, property damage, personal or advertising injury. Professional liability insurance coverage, on the other hand, protects businesses and individuals against claims made by clients for wrongful acts resulting in economic damage. Many businesses can benefit from both coverages.

There are certain instances where your business is legally required to have general liability insurance. You may sign a contract with a client for work and that contract can specify that you prove you are covered. You may lease space and your lease contract may stipulate that you retain general liability coverage while you are a tenant. If you are accredited or licensed by a professional organization or are required by your state or municipality to have a business permit, you may need to show proof that you are covered by general liability insurance in order to keep your license or permit. If you are financing a building or equipment, your lender may require GL coverage.

General liability insurance is designed to protect you from the expenses from some of the most common lawsuits that arise from doing business. But general liability insurance is not designed to protect against losses that happen when your tools, equipment, inventory or other property are stolen. Commercial property insurance as well as a combined business owners policy protect against theft.

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Travelers umbrella.

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SPEAKER: What is general liability insurance? If you're like a lot of small business owners, you're not left with a lot of time to think about the what-ifs.

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But the truth is, things happen and things can go wrong. Say a customer slips on your floor and breaks a wrist, or an employee causes damage while working in a customer's home, or one of your products injures somebody or damages their property. That's why it's important to have general liability insurance.

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But the truth is, things happen and things can go wrong. Say a customer slips on your floor and breaks a wrist, or an employee causes damage while working in a customer's home, or one of your products injures somebody or damages their property. That's why it's important to have general liability insurance.

Consider a potential judgment or settlement plus the legal expenses. The costs can add up quickly. General liability insurance helps cover the costs associated with a claim against your business.

Here are three typical coverage features included in a general liability insurance policy-- premises liability for bodily injuries to customers or other people not employed by your company; products liability for damage to property or bodily injury to people caused by your products or services; and personal and advertising injury, which helps protect your business from the costs related to claims of slander, copyright infringement in your advertising, and more.

Don't let a liability claim derail the plans and aspirations you have for your business. To get started with general liability and other business insurance solutions, contact a Travelers independent agent or visit travelers.com.

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