Liability

General Liability Insurance

Protection for claims that your business injured someone or damaged their property — often the first policy a landlord, client or general contractor asks to see.

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Commercial general liability (CGL) can respond when someone says your premises, operations, products or finished work injured them or damaged their property. It typically pays defense costs plus settlements or judgments up to the policy limits, subject to the policy terms and exclusions.

For many businesses, the endorsements matter as much as the limit. An endorsement is a written change to the policy. Landlords, general contractors and larger customers often ask for additional insured status, primary and non-contributory wording or a waiver of subrogation before you sign a lease or start work.

We help businesses across the U.S. compare their operations, leases and contracts with the policy form, classification codes and endorsements, so the policy reflects the work you actually do and where you do it.

What's typically included

Exact coverage depends on the policy form, endorsements and insurance company.

Premises and operations

Claims of bodily injury or property damage arising from your location or your work, such as a customer's fall in your store or damage to a client's property while you're on site.

Products-completed operations

Claims that arise after a job is finished or a product leaves your hands, such as a leak from a completed installation. This part usually has its own aggregate — the most the policy pays for all such claims in a policy period.

Personal and advertising injury

Certain claims such as libel, slander, false arrest, wrongful eviction, or using someone's copyright or slogan in your advertising, as the policy defines them.

Medical payments

A small limit for medical bills of people hurt at your premises or because of your operations, usually paid regardless of fault. It can help resolve minor injuries before they turn into lawsuits.

Damage to premises rented to you

A separate, usually small limit for damage you cause to space you rent. On many forms it applies only to fire damage when you rent for more than a short period, so leases deserve a review.

Additional insured endorsements

Can extend some protection under your policy to a landlord, general contractor, owner or client, usually only for claims arising from your premises or work. Blanket and scheduled versions exist, and ongoing and completed operations wording differ, so the endorsement should match the contract.

Primary & non-contributory and waiver of subrogation

Primary and non-contributory wording can make your policy respond before the other party's own insurance, without asking it to share. A waiver of subrogation gives up your insurance company's right to recover a paid claim from that party. Both apply only as the endorsement and contract describe, and availability depends on the insurance company.

What to watch for

Classification codes — how the insurance company categorizes your business — that don't match what you actually do. A mismatch can lead to audit adjustments or coverage disputes after a claim.
Exclusions that remove coverage for core parts of your work. Contractors in particular should check for residential, roofing, height, EIFS (synthetic stucco) or action-over exclusions, which can apply when an injured worker sues a general contractor or owner who then turns to you.
If you hire subcontractors, policy conditions that require you to collect their certificates and additional insured endorsements with matching limits — otherwise an exclusion or audit charge can apply.
Additional insured wording limited to ongoing operations when a contract also asks for protection after the work is completed.
One aggregate limit shared across every location or job when a lease or contract asks for a per-location or per-project aggregate.
Professional services, auto, employee injury, pollution and data breach exposures, which general liability policies generally exclude and which usually need their own coverage.

What affects price and eligibility

Classification codes and the type of work, products or premises involved
Rating basis such as payroll, gross sales, square footage or subcontracted costs
Claims history, usually for the last three to five years
Limits, deductible and contract endorsements such as additional insured, primary and non-contributory, and per-project aggregate
If you hire subcontractors, whether they carry their own insurance
Locations and states where you operate

Helpful information for a quote

Have what you can — we'll ask for anything else an insurance company needs. Starting a new business? You can begin without prior policies or loss runs.

A short description of what your business does — the products you sell, the services you provide and where you work
Estimated annual sales and payroll, plus subcontracted costs if you hire subcontractors
For contractors, the rough split of residential and commercial, new construction and remodeling work
Your locations, approximate square footage and the states where you operate
Leases, contracts or vendor agreements that list insurance requirements, if you have them
Your current declarations page (the policy's summary page), if you're insured now
Loss runs (claims history reports) for the last 3–5 years, if you've been insured before

Written by ALP Insurance

Who typically needs it

Shops, offices, restaurants and other businesses that customers, vendors or delivery drivers visit
Contractors and subcontractors working for general contractors, property owners or homeowners
Service businesses that work inside customer homes or facilities
Manufacturers, wholesalers and distributors whose products end up in other people's hands
Landlords and property owners responsible for buildings, lots and common areas
Any business whose lease, vendor agreement or contract requires a certificate of insurance

Talk it through with an agent

Not sure what you need? Start a request and choose "Not sure" — a licensed ALP agent will talk through the options with you.

Request a general liability quote

Industry guides

General Liability FAQs

What is the difference between occurrence and claims-made general liability?

Most general liability policies are written on an occurrence basis, so the policy in force when the injury or damage happened typically responds, even if the claim arrives years later. Claims-made forms exist for some types of business and work differently, so it is worth checking which one you have.

Does a certificate of insurance make someone an additional insured?

No. A certificate only summarizes your policy; the policy itself needs an additional insured endorsement that matches the contract. Wording varies by form and insurance company, so we compare it with the contract before a certificate goes out.

My lease says my landlord must be an additional insured. What do I need?

Many commercial leases ask for this, often along with specific limits and wording. Send us the insurance section of the lease so we can compare it with your policy and point out anything that needs an endorsement before you sign or renew.

Does general liability respond to injuries to my own employees?

Typically not. Employee injuries generally fall under workers' compensation and employers liability, which is a separate policy.

Will general liability pay to fix my own faulty work?

Usually not for the cost of redoing your own defective work or replacing your own faulty product. Many policies can respond to resulting bodily injury or damage to other property, depending on the wording and the facts of the claim.

Why did I get a bill after my general liability policy ended?

Many general liability policies are priced on estimated payroll or sales and audited after the term ends. If actual figures — or costs for uninsured subcontractors — come in higher than estimated, an additional premium can be due.