General Liability Insurance
Protection for the everyday risks of doing business — from customer injuries and property damage to certain liability claims that can arise during normal operations.
Protection for the Everyday Risks of Doing Business
An accident involving a customer, visitor, job site or another person's property can quickly become an expensive problem for a business.
General Liability Insurance is designed to help businesses address certain third-party liability claims that can arise during normal business operations.
John Scott Insurance helps business owners evaluate their liability exposures and understand how general liability coverage fits into their overall commercial insurance program.
What Is General Liability Insurance?
Commercial General Liability Insurance — often referred to simply as General Liability or CGL insurance — is one of the foundational coverages carried by many businesses.
It may provide coverage for certain claims involving:
injury
property damage
advertising injury
costs
Coverage varies by policy, business and carrier, so it’s important to understand the specific terms, conditions, limits and exclusions of your policy.
What Does General Liability Insurance Cover?
Bodily Injury
If a customer, visitor or other third party is injured as a result of your business operations, general liability insurance may help with certain covered costs associated with the claim.
For example, a customer could slip and fall at your business or someone could be injured at a job site.
Property Damage
Businesses can sometimes accidentally damage property belonging to another person or company.
Depending on the circumstances and policy, general liability insurance may respond to certain covered third-party property damage claims.
Personal & Advertising Injury
General liability policies may also provide coverage for certain claims involving personal or advertising injury, subject to policy terms and exclusions.
Legal Defense
Even when a business disputes a liability claim, defending against that claim can be costly.
General liability insurance may provide defense for certain covered claims according to the terms of the policy.
What Isn’t Typically Covered by General Liability Insurance?
General liability is important, but it isn’t designed to cover every business risk.
Depending on the circumstances, separate insurance may be needed for exposures such as:
General Liability as Part of Your Business Insurance Program
This section is important because it gives visitors an easy way to understand that General Liability is one piece of a larger business insurance program.
Who Needs General Liability Insurance?
General liability insurance may be appropriate for many different types of businesses.
Examples can include:
The appropriate coverage depends on the individual business and its operations.
General Liability Insurance for Contractors
Contractors can face particularly significant liability exposures because their work frequently takes place on property belonging to someone else.
A contractor may be asked to provide proof of general liability insurance before beginning a project or entering a job site.
The type of work performed, subcontractor use, payroll, revenue, prior claims and other factors can affect coverage options and underwriting.
John Scott Insurance also operates Contractors Insurance Agency, a specialized division focused on contractors and construction-related businesses.
General Liability Insurance for Tree
Service Businesses
Tree trimming and removal operations can create unique liability exposures.
Crews may work around homes, businesses, vehicles, fences, landscaping, utility lines and other property while using specialized equipment and working at height.
John Scott Insurance also operates Tree Trimmers Insurance Agency, a specialized division focused specifically on insurance for tree care professionals.
How Much General Liability Insurance Does a Business Need?
There isn’t one liability limit that’s appropriate for every business.
The amount of coverage a company should consider can depend on factors such as:
Contracts, landlords, customers and other parties may also establish minimum insurance requirements.
John Scott Insurance can help business owners review these requirements alongside their overall liability exposure.
What Affects the Cost of General Liability Insurance?
Insurance companies consider a number of factors when evaluating a business.
These may include:
Two businesses with similar revenue can have very different insurance costs because their operations and exposures are different.
General Liability as Part of Your Business Insurance Program
General liability shouldn’t necessarily be evaluated in isolation.
A business may also need commercial property, workers’ compensation, commercial auto, equipment coverage, cyber liability, umbrella coverage or other specialized insurance.
This is why John Scott Insurance starts by looking at the business itself, rather than simply quoting one policy.
The John Scott RiskMAP™ Approach
The John Scott RiskMAP™ Approach
Please incorporate the existing John Scott RiskMAP™ Analysis messaging here as well.
The goal is to reinforce that we’re not simply asking, “Do you have General Liability?”
We want to understand the business, identify exposures and look at how General Liability fits with the rest of the company’s insurance program.
Please use the existing approved RiskMAP™ language/branding where appropriate.
Frequently Asked Questions About General Liability Insurance
Is general liability insurance required by law?
General liability insurance isn’t universally required by law for every business. However, landlords, lenders, customers, general contractors or contracts may require a business to carry it.
What’s the difference between general liability and professional liability?
General liability typically addresses certain claims involving third-party bodily injury and property damage. Professional liability generally addresses certain claims involving professional services, errors or advice. The appropriate coverage depends on the business.
Does general liability cover employee injuries?
Employee work-related injuries are generally addressed through workers’ compensation rather than general liability insurance.
Does general liability cover damage to my own property?
General liability generally focuses on third-party liability rather than damage to the business’s own property. Commercial property coverage may be needed for buildings, contents and other eligible business property.
Does general liability cover my work vehicle?
Business vehicles generally require commercial auto insurance. General liability is not a replacement for commercial auto coverage.
Does general liability cover subcontractors?
Subcontractor exposures can be complex. Coverage depends on the policy, operations, contracts and how subcontractors are used. Businesses that hire subcontractors should discuss these arrangements with their insurance professional.
What is a certificate of insurance?
A certificate of insurance provides information about certain insurance policies and limits in effect when the certificate is issued. Businesses are often asked to provide certificates to customers, landlords, general contractors or other parties.
What’s the difference between general liability and a Business Owners Policy?
General liability is a type of liability coverage. A Business Owners Policy, or BOP, generally combines certain coverages — often including general liability and commercial property — into one policy for eligible businesses.
Can I increase my liability limits?
Businesses needing liability protection beyond certain underlying policy limits may want to explore Commercial Umbrella or Excess Liability coverage.
General Liability Insurance Across the Midwest
John Scott Insurance works with commercial clients throughout:
Businesses operating in more than one state should discuss their entire operating territory with their insurance professional so coverage and state-specific considerations can be reviewed.
Let’s Talk About Your Business
General liability insurance is an important part of protecting many businesses — but the right insurance program begins with understanding what your company actually does.
John Scott Insurance can help you review your liability exposures, current coverage and overall business insurance program.