Business Insurance
General Liability Insurance
General liability insurance is the foundational business policy covering lawsuits from customers, vendors, or bystanders injured on your premises or by your operations.
Last reviewed: May 2026 · Editorial methodology
Definition
General liability insurance (GL) pays for third-party bodily injury, property damage, and personal and advertising injury claims arising from your business operations, products, or premises. A retail store might pay $500–$1,500/year while a roofing contractor could pay $5,000–$15,000/year due to elevated risk. Most commercial leases require tenants to carry at least $1 million per occurrence in GL coverage. The policy covers legal defense costs even for frivolous lawsuits, which alone can run tens of thousands of dollars. Common pitfalls include assuming GL covers professional mistakes — it does not, which is why professional liability insurance exists as a separate policy. Some states, notably California and New York, have higher jury awards that push insurers to charge more in those markets.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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