The trip and fall
A visitor trips over a cord in your office and breaks a wrist, then sues for medical bills and lost wages.
Bodily injury coverage can pay the claim and your legal defense.
Commercial Property & Casualty
General & products liability, built around your contracts.
Commercial general liability (CGL) protects your business when a customer, vendor or member of the public says your operations, products or completed work injured them or damaged their property.
What general liability covers.
It's the foundation of almost every commercial insurance program, and most leases, client contracts and vendor agreements require it, often with specific limits and endorsements.
Products liability is part of the same policy. The products-completed operations portion of a CGL responds to claims that something you made, distributed or sold, or work you finished, caused injury or damage after it left your hands, and it usually carries its own aggregate limit. Manufacturers, distributors and contractors depend on it most.
- Bodily injury and property damageClaims that your premises or operations injured someone or damaged their property, including medical bills, damages and legal defense.
- Products and completed operationsClaims that a product you made, distributed or sold, or work you completed, caused injury or damage after it left your control.
- Personal and advertising injuryClaims such as libel, slander, invasion of privacy, and certain infringement in your advertising.
- Medical paymentsLimited medical expenses for someone injured on your premises or by your operations, regardless of fault.
- Defense costsOn most CGL forms, defense costs are paid in addition to the policy limits rather than reducing them.
What it typically doesn’t cover
- Injuries to your employeesCovered by workers' compensation and employer's liability. Workers' Compensation Insurance
- VehiclesAccidents involving owned, hired or borrowed vehicles belong on a commercial auto policy. Commercial Auto Insurance
- Professional mistakesFinancial loss caused by your advice or professional services needs E&O. Professional Liability / E&O Insurance
- Damage to your own propertyYour building, equipment and inventory are covered by commercial property. Commercial Property Insurance
- Product recall and your own faulty workThe cost to recall, repair or replace your own product or work is generally excluded. Recall coverage is purchased separately.
- Cyber and data breachMost CGL forms exclude data breaches and electronic data losses. Cyber Liability Insurance
Coverage descriptions are general summaries. Actual coverage is governed by the terms, conditions and exclusions of the policy issued. Availability varies by state and carrier.
Real-world examples
What a claim can look like.
Claims rarely look dramatic at the start. They usually begin with an ordinary day, an email or a phone call.
The product that failed later
Months after a sale, a component you distributed fails and injures a customer's employee.
Products-completed operations coverage can respond to the claim.
The leak after the job
Weeks after your crew finishes a repair, a fitting you installed fails and water damages the client's flooring and furniture.
Completed operations coverage can respond to the damage to their property. Fixing your own faulty work is typically excluded.
Examples are illustrative. Whether a claim is covered depends on the facts and the terms, conditions and exclusions of your policy.
Often paired with
Umbrella & Excess Liability InsuranceAdditional liability limits above underlying commercial liability policies.Commercial Property InsuranceBuildings, equipment, inventory, business income and extra expenses following covered property losses.Business Owner's Policy (BOP)Liability, property and business income coverage combined into one policy.Professional Liability / E&O InsuranceClaims alleging that your professional advice, services or work caused a financial loss.Questions
Common questions about general liability, answered.
What does general liability insurance cover?
It covers claims that your business caused bodily injury or property damage to someone else, including through your products or completed work, plus personal and advertising injury and the legal costs to defend those claims. It does not cover your own employees, your vehicles or professional mistakes.
Do I need separate products liability insurance?
For most businesses, products liability is included in the CGL through products-completed operations coverage. Manufacturers and distributors with significant product exposure may need higher limits, vendors endorsements or a dedicated products liability policy. Recall costs are a separate coverage.
How much general liability coverage do I need?
Many businesses carry $1 million per occurrence with a $2 million aggregate, but the right answer depends on your contracts, industry and assets. When a contract requires higher limits, an umbrella policy is often the most efficient way to get there.
Is general liability the same as a business owner's policy?
No. A business owner's policy (BOP) packages general liability with commercial property and business income coverage for eligible small businesses. Larger or higher-hazard businesses usually buy general liability on its own.
How much does general liability cost?
It depends mostly on what your business does. Carriers price general liability by industry and type of work, using revenue, payroll or square footage as the base. Product sales, claims history, limits and any endorsements your contracts require also matter. We compare options across our carrier relationships so you see real prices for your business, not an average.
Talk to an advisor
Let's get this fitted properly.
Tell us about your business. A principal will review your needs, shop the market and walk you through the options in plain English.