General liability insurance (GLI) is one of the most essential insurance types for businesses of all sizes—especially for LLCs, contractors, and self-employed professionals. Here’s a complete breakdown:
🛡️ What Is General Liability Insurance?
General liability insurance protects your business from common risks, including:
- Bodily injury (e.g. a customer slips and falls in your store)
- Property damage (e.g. you damage a client’s property while working on-site)
- Personal & advertising injury (e.g. you’re sued for slander, libel, or copyright infringement)
It covers legal defense, court costs, settlements, and medical expenses.
🧾 What Does It Cover?
| Type of Claim | Example |
|---|---|
| Bodily Injury | A visitor trips on loose flooring in your shop |
| Property Damage | You spill coffee on a client’s laptop during a meeting |
| Advertising Injury | You accidentally copy a competitor’s slogan |
| Legal Defense Costs | Pays for attorney fees, even if you’re not at fault |
| Medical Payments | Covers minor injuries without needing a lawsuit |
🚫 What It Doesn’t Cover
- Employee injuries (covered by workers’ comp)
- Professional mistakes (needs professional liability insurance)
- Damage to your own property
- Auto accidents (needs commercial auto insurance)
- Intentional acts or criminal behavior
💲 How Much Does It Cost?
- Average Cost:
- $30–$60/month for small businesses
- ~$350–$900/year for basic coverage ($1M per occurrence, $2M aggregate)
- Factors that affect cost:
- Industry risk (contractors pay more than consultants)
- Number of employees
- Business size and revenue
- Claims history
- Coverage limits and deductibles
✅ Who Needs General Liability Insurance?
Recommended for nearly all businesses, especially if you:
- Work directly with clients/customers
- Lease or own office or retail space
- Sell physical products
- Advertise publicly
- Attend trade shows or industry events
Commonly needed by:
- LLCs
- Independent contractors
- Sole proprietors
- Retailers
- Consultants
- Handymen, construction professionals
Some landlords, clients, and contracts require you to have it to work or rent space.
🧭 Best General Liability Insurance Providers (2025)
| Provider | Best For | Starting Cost |
|---|---|---|
| NEXT | Lowest cost + instant quotes | ~$29/mo |
| Hiscox | Freelancers and home-based business | ~$30/mo |
| The Hartford | Mid-sized firms with multiple coverages | ~$50–60/mo |
| Nationwide | Reliable coverage + financial strength | ~$47/mo |
| Chubb | High-limit BOP bundles | Custom |
| Thimble | Short-term, flexible plans | ~$17/day |
📄 What Documents You’ll Receive
- Certificate of Insurance (COI) – often needed to:
- Sign contracts
- Lease commercial space
- Bid on jobs (especially for contractors)
🧮 How to Get Covered
- Determine your needs – size, industry, contract requirements.
- Compare quotes – get multiple quotes from providers above.
- Decide on coverage limits – standard is $1M per claim / $2M total.
- Buy & get your COI – many insurers (e.g., NEXT, Thimble) issue it instantly.
Would you like help finding the best general liability policy for your industry or budget? Let me know your business type, and I’ll guide you to the best options.
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