The Basics of General Liability
General liability insurance covers third-party claims for bodily injury, property damage, and certain types of advertising or reputational harm caused by your business. If a customer is injured on your premises or your work damages someone else’s property, this is the coverage that typically responds. It’s the foundation most businesses build their broader insurance program around.
Professional Liability Covers a Different Risk
If your business provides advice, services, or expertise, professional liability, sometimes called errors and omissions coverage, protects you if a client claims your work caused them financial harm. This is separate from general liability and matters most for service-based businesses, consultants, and professionals whose work centers on judgment and advice rather than physical products.
Product Liability for Businesses That Sell Goods
If you manufacture, distribute, or sell products, product liability coverage protects you if a product causes injury or damage after it leaves your hands. This applies even if you didn’t manufacture the product yourself, since distributors and retailers can still face claims tied to a defective item.
How Much Coverage Is Enough
Coverage limits should reflect your actual exposure, not a generic minimum. A larger business with more foot traffic, more employees, or higher-value contracts generally needs higher limits than a small operation just starting out. We often see businesses that haven’t adjusted their limits in years, even as their revenue and risk have grown considerably.
Pairing Liability With a Broader Policy
Many businesses bundle liability coverage into a business owner policy, which combines property and liability protection into a single package. This can simplify your coverage and sometimes reduce cost compared to buying each piece separately. If you run a business with unique risk, like contracting work or nonprofit operations, your liability needs may extend beyond a standard package policy.
If you’re not sure whether your current liability coverage matches your actual risk, request a quote and we’ll review your policy together.