General Liability Insurance

Slip-and-fall injuries | Property damage | Legal fees & defense costs | Medical payments | Reputational harm | Advertising injury

What is General Liability insurance?

General liability business insurance can provide financial protection for some of the most common accidents at a business.

It can help if someone other than an employee gets hurt and your business is at fault. This is called “bodily injury.”

General liability insurance coverage can also help pay for repair or replacement costs if you accidentally damage property that doesn’t belong to you.

And if you’re accused of reputational harm (libel or slander), false advertising (advertising injury) or copyright infringement, your insurance policy can provide coverage for that, too.

It’s one of the most frequently purchased types of business insurance by small business owners because of the broad protection it offers.

This type of coverage is also sometimes called “business liability insurance,” “commercial general liability (CGL),” “public liability” or “liability insurance.” For the sake of simplicity, we’ll just call it general liability in the details below.

What does General Liability cover?

General liability insurance coverage can help protect you from unexpected expenses related to many of the most common types of accidents that can affect your business and lead to lawsuits, such as:

  • Injuries to people who are not your employees (bodily injury)
  • Damage to another person’s property (property damage)
  • Court and legal fees
  • Medical payments
  • Advertising harm
  • Accusations of libel or slander (personal injury or reputational harm)

If you’re involved with any of these business risks, our general liability claims process could provide financial help if it is a covered event.

General Liability and Property Insurance

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FAQs.

General liability insurance is often the first type of coverage purchased by new business owners, but it’s not typically required by law.

However, some agencies might require coverage before issuing a professional license or permit. This is common in construction.

Clients might also ask for proof of insurance before they will work with you.

Here’s a quick overview:

Professional liability insurance and general liability insurance offer similar benefits but there is one major difference — professional liability insurance can help cover professional mistakes and accusations of neglect. It’s often related to advice you provide to a client or customer, not accidents in the workplace.

General liability insurance coverage can provide financial protection for accidents that are more physical, such as property damage and injuries involving people who are not your employees.

General liability aggregate is a common insurance industry term you’ll run into when exploring options for this coverage.

It’s the maximum amount of money an insurance company will pay out during your policy period, which is usually one year.

If your business has expensive claims, you might hit your aggregate limit. In that case, you would be responsible for paying out of pocket to cover the remaining expenses.

Note that the aggregate limit is different from the “per occurrence” limit, which is the maximum amount your policy pays out per claim within the term of your policy.

For example, if you have a general aggregate liability limit of $300,000 and you’ve already made three claims in your policy term (usually a year) for $100,000 each, you’ve reached your aggregate limit and your insurance company won’t cover any additional claims.

It’s important to know your aggregate limit when you purchase general liability insurance. If you exceed your limit during your policy term, you will be responsible for paying for any expenses out of pocket that exceed the limit.

General liability insurance can cover expenses related to property damage, but only to property that does not belong to you.

Commercial property insurance can help protect the physical items you need to operate your business:

  • Inventory
  • Business equipment
  • Furniture and furnishings
  • Physical structures.

A business owner’s policy (BOP insurance) combines general liability insurance and commercial property insurance into one package that is usually less expensive than buying the coverage separately.

 

General liability insurance does not cover automobile liability or any expenses related to business or personal driving.

Commercial auto insurance can help cover expenses If you drive for business reasons:

  • Injuries if you are responsible for an accident
  • Property damage to other people’s property
  • Repairs for your vehicle
  • Towing and rentals if your vehicle is damaged

General liability insurance doesn’t cover the theft of your own possessions but it might cover the theft of customer property.

If you’re repairing a garage door for a homeowner and someone steals her bike while you’re out back, general liability could help pay for a replacement.

But if any of your personal or business items are stolen, you won’t be covered without additional insurance.

You can bundle tools & equipment insurance with your NEXT Insurance general liability coverage if you are a contractor or own a cleaning business.

 

General liability insurance can help pay for expenses if your business is accused of causing an injury, but injuries to you or your employee are not included.

Workers’ compensation insurance can help pay for medical expenses and lost wages if an employee is hurt on the job.

Most states legally require you to purchase coverage as soon as you hire an employee. It also provides benefits for business owners if they get hurt on the job if they purchase optional business owner’s coverage.

General liability insurance premiums can typically be deducted from your taxes. It’s important to consult with a licensed accounting professional to make sure you qualify.

The IRS categorizes payments you make for this type of insurance to be both an “ordinary and necessary” business expense so be sure to keep a file of how much you pay every year for your policy.
How much General Liability insurance do I need?

Our small business insurance isn’t one-size-fits-all. Each business is unique and has different insurance needs.

The coverage you need depends on several factors, including:

  • The type of work you do
  • How many employees and subcontractors you have
  • The level of risk your company faces
  • The state where you work
  • When you complete an instant quote online with Next, you can review options and adjust limits to your preference.

With NEXT, it can take less than 10 minutes to purchase coverage and you’ll have instant access to policy documents and your certificate of insurance (COI).

You can access your documents and COI 24/7 online or in the NEXT app for iPhone or Android.

You can file a claim anytime and from anywhere online or in the NEXT app.

You’ll be asked to share the details of what happened and to provide relevant photos and documentation. We strive to make claims decisions within 48 hours so you can get back to focusing on your work.

Often, claims decisions are made within 48 hours, although some claims require more time.

The specific details of the claim, how bad the damage is, how many people are involved, the availability of information and other factors all contribute to the decision process.

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Office

16510 Aston, Irvine, California 92606

Contact

(949) 418-1299

Open Hours

Monday – Friday: 8am – 6pm (PST)
Saturday: 10am – 2pm (PST)
Sunday: Closed

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