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Accidents happen. But Simply Business can help keep you protected with general liability insurance, or what is sometimes referred to as business liability insurance.
Whether you’re a cleaner or a contractor, we've got you. That's because we can customize your general liability insurance to your exact needs. Plus, you don’t have to invest a lot of time doing research or visiting dozens of different websites.
With our easy quote form, you can get free quotes from top insurers that specialize in your industry. That means it's easier to find the coverage you need, at a time that works best for you.
Ready to get started? Answer a few questions to get general liability quotes. You can select and buy your policy 100% online. Or give one of our agents a call - we're always happy to help.
This business insurance covers costs from third-party accidents, property damage, and bodily injury. You may have also heard it called commercial general liability (CGL) insurance. But no matter what you've called it, the bottom line is simple. 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 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 the costs of a claim — including any resulting legal fees — up to your policy limit.
For a quick summary, GL insurance usually covers:
GL insurance usually does not cover:
You may be an expert at transforming a client with the right cut and hair color. Maybe you can drive a nail with a single swing of a hammer. Or you’re an absolute cleaning whiz who can make a home or office look like new. But being a master of your craft or trade doesn’t mean you’re a master of circumstances.
Accidents can happen, even to the best of us. That’s why having liability coverage can be a benefit for almost every type of business.
Are you a small business owner who works on customer sites? If that's the case, we typically recommend getting a general liability insurance policy. Plus, this business insurance can cover your employee or employees if they cause any damage.
So what happens without this policy? Then you — and your family — may be financially vulnerable to damages or accidents that happen on the job.
Here are a few more reasons why you may need to get general liability insurance coverage:
General liability insurance protects 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. It's a great way to ensure that a claim never puts you out of business.
Business liability insurance coverage can provide your business with protection against a claim resulting from damage to property, 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.
General liability insurance coverage protects against claims of personal or advertising injury. These can include claims of stolen ideas, invasion of privacy, libel, slander and copyright infringement related to advertising.
For example, iIf 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 that claim. This part of general liability insurance - known more specifically as product liability insurance is essential for small business owners who make and sell products, especially in e-commerce stores.
Let’s say you sell lamps hand carved from driftwood in an online store. One of the lamps has a bad wire that causes a fire in a customer’s home. If that happens, you could potentially be responsible for damages or medical expenses.
In some cases, general liability insurance 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 policy.
If you depend on your tools to get the job done, your tools are vital assets. While you might be able to easily replace one or two, would you be able to afford to replace most or all of them if they were stolen or lost? Then, think about what that could do to your business if you couldn’t.
Let’s take a look at an example of how a general liability insurance policy 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 more damages.
Essentially, general liability insurance makes it possible for your business to survive business-related accidents or lawsuits. And with an estimated 43% of small businesses threatened with a lawsuit, 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 general liability 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 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 costs 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 cost is largely determined by 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).
Some other factors can include where your business is located, how many years of experience you have, and the financial stability of your operation.
Here at Simply Business, we specialize in helping small business owners find general liability insurance that's as affordable as it is comprehensive. We can help you find and select GL policies for as low as $22.50 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. Once you find one you like, you can select it and buy 100% online or over your phone.
The number of employees you have in your company can play a role in how much you pay for your coverage.
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.