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Accidents happen. But Simply Business can help keep you protected with general liability insurance.
Whether you’re a cleaner or a contractor, our business liability insurance can be customized to your exact needs. With our easy quote form, you can get free quotes from top insurers that specialize in your industry, helping you find the exact coverage you need.
Just answer a few questions to get a general liability insurance quote customized for you in under 10 minutes.
GL insurance — which is also referred to as commercial general liability (CGL) insurance — covers costs associated with third-party accidents, property damage, and bodily injury. Without this type of coverage, your business may be responsible for those costs.
And if those bills are too large, they could be absolutely catastrophic for your business. Consider this: the average claim for property damage or customer injury is a whopping $30,000.
Think about it — that’s $30,000 coming from your business bank account or even your own family’s finances.
With GL protection, you don’t have to worry about putting your business or family at risk. Your policy can cover these costs — including any resulting legal fees — up to your policy limit.
For a quick summary, general liability usually covers:
General liability insurance usually does not cover:
If you’re a small business owner who works on customer sites, we recommend protecting yourself and your employees with a commercial general liability policy. Without this policy, you’re leaving yourself — and your family — financially vulnerable to any damages or accidents that happen throughout the course of doing business.
Here are a few additional reasons why you may need a GL policy:
GL insurance can protect you against any unintentional damages you might cause on a client’s property. For example, if you accidentally knock over a customer’s laptop while doing your work, your policy can cover the cost of replacing that laptop, as well as any resulting legal fees if the customer decides to sue you.
Business liability insurance can provide your business with coverage against claims resulting from property damage, accidents, and bodily injury. This insurance policy protects you and your business when third parties (usually customers or vendors) are injured on your commercial property.
Additionally, GL insurance can cover any claims of personal or advertising injury. If one of your employees slanders a customer of yours on Facebook and they decide to sue, your GL policy can cover legal fees, as well as any resulting damage payouts.
If your business accidentally manufactures a product that has a defect - and that defect ends up causing injury to someone - your policy could help cover costs arising from a resulting claim. This part of GL insurance - known more specifically as product liability insurance is essential for small business owners who make and sell products, especially in e-commerce stores.
In some cases, GL can cover the cost of replacing or repairing your business tools and equipment if they’re lost or stolen. This is known as contents coverage, and it can usually be added to your commercial general liability insurance policy.
Let’s take a look at an example of how GL insurance works in action.
A plumber is doing light repairs on pipes in a client’s remodeled bathroom. However, he doesn’t secure the caps as tightly as he should have, which causes considerable water damage in the new bathroom.
The plumber’s general liability insurance policy covers the $7,500 cost of repairing the water damage. The only out-of-pocket expense the plumber has to pay is the policy deductible.
Without this protection, the plumber would have had to pay the entire $7,500 out of pocket, plus any legal fees if the customer decided to sue for additional damages.
Essentially, general liability insurance makes it possible for your business to survive accidents or lawsuits that may occur throughout the course of doing your work. And with an estimated 20 million civil lawsuits filed in the United States every year, there’s a very real chance you may need your insurance to get you out of legal hot water.
Commercial liability insurance is not required by federal law, but most cities and states have their own legal requirements for business owners who work with the public. For example, if you’re a contractor and you’re applying for a license, most states will require you to provide proof of GL coverage before you can get licensed.
Regardless of your state’s requirements around GL insurance, it’s a good idea to take out this policy. Most customers won’t work with you unless you have it, and some vendors won’t allow you on their property without proof of insurance coverage.
Commercial general liability insurance is critical for businesses that deal with the public. It gives you the peace of mind you need to focus on your business, plus, it can make customers more confident about working with you.
Accidents happen, even when you try to do everything right. General liability insurance means that if the worst happens, you and your family won’t be held financially responsible for any resulting lawsuits, medical costs, and property damage.
Typically, your general liability insurance premiums are income- tax-deductible. That’s because the IRS considers your policy premium as part of your business costs, which are deductible. However, you should get advice from a tax preparer or an accountant if you’d like to learn more about deducting your insurance premiums from your business’s taxes.
General liability costs largely depend on the type of work you do, the kinds of risks you're exposed to, and the number of employees you have on your payroll (see next section for more details).
Here at Simply Business, we specialize in helping small business owners find business liability coverage that's as affordable as it is comprehensive. We can help you find GL policies for as low as $25.95 per month, meaning you don't need to break the bank to get coverage for your business.*
To see how much you could pay for general liability insurance coverage, just answer a few questions on our quote form and start comparing policies from the nation's top insurers.
The number of employees you have in your company can play a role in how much you pay for business liability insurance.
Think about it this way: The more employees you have, the greater the likelihood that they may cause damage in your office or on a customer’s property.
Even the best small business owner can’t control risks that come with having employees on the job. Your employee may accidentally damage a customer’s property or say something about a client that results in legal action. These common scenarios happen a lot more than you think, and without general liability protection, you could end up leaving your business and your family vulnerable.
* Monthly payment calculations (i) do not include initial premium down payment and (ii) may vary by state, insurance provider, and nature of your business. Averages based on January - December 2020 data of 10% of our total policies sold.
This content is intended to be used for informational purposes only. It is not intended to provide legal, tax, accounting, investment, or any other form of professional advice.
*Harborway Insurance policies are underwritten by Spinnaker Insurance Company and reinsured by Munich Re, an A+ (Superior) rated insurance carrier by AM Best. Harborway Insurance is a brand name of Harborway Insurance Agency, LLC, a licensed insurance producer in all 50 states and the District of Columbia. California license #6004217.