What it covers, what it doesn't, and how much it typically costs for a US small business.
General liability insurance is the most fundamental coverage a small business can have. It protects you if a customer, client, or third party claims your business caused them bodily injury or property damage.
General liability (often called GL insurance) typically covers three things: bodily injury to someone who isn't your employee, property damage you or your team cause to someone else's belongings, and personal and advertising injury — which includes things like libel, slander, or copyright infringement in your marketing.
A common example: a client visits your office and trips over a cable, injuring themselves. Without GL coverage, you're paying legal fees and any settlement out of pocket. With it, your insurer handles the claim.
General liability does not cover your own injuries or those of your employees (that's workers' compensation). It doesn't cover damage to your own property, professional mistakes or bad advice (that's professional liability or E&O insurance), or auto accidents involving your business vehicles (that's commercial auto insurance).
For most small businesses, general liability insurance costs between $400 and $1,500 per year — roughly $30 to $125 per month. The exact number depends on your industry (trades businesses pay more than freelancers), your revenue, your location, and how many employees you have.
In most US states, general liability is not legally required — but many clients, landlords, and licensing boards require you to carry it before they'll work with you. In construction and contracting, it's effectively mandatory. In professional services, it's increasingly expected.
If you work with clients, customers, or members of the public in any capacity, general liability insurance is not optional in any practical sense. The cost of one uncovered claim will exceed years of premiums. Get a quote before you need it.