If you own a business, you likely have or need general liability insurance. General liability insurance covers common dangers related to bodily injury, property damage and personal or advertising injury. 

Most basic general liability policies cover $1 million to $2 million per occurrence. This means that if a lawsuit occurs, you may receive up to $1 million to cover that claim. 

Larger businesses generally need higher limits of general liability in order to protect against expensive lawsuits. Limits may also depend on specific requirements and industry. For example, your industry may require you to carry a certain amount of general liability insurance. You can carry higher limits than this requirement, but you cannot carry lower. 

Be sure to check the requirements for your industry as well as the frequency of claims. If you work in an industry with a high rate of liability claims (such as construction) you may need higher limits of general liability insurance in order to protect your business. 

How Much is Covered Under General Liability Insurance? 

A typical general liability insurance covers medical expenses in case of injury, property damage and related legal expenses in case of a lawsuit. For example, say a customer in your grocery store is walking down the aisle. A heavy jar from the top shelf falls and hits the customer’s head, making them bleed and giving them a concussion. 

They are rushed to the hospital, and later try to file a lawsuit against your retail store for negligence. General liability insurance will help cover their medical costs, such as the hospital stay and treatment. If the customer still decides to sue for more money, general liability can offer compensation for the business’ legal fees, court costs, defense expenses, settlement costs and more. 

Is General Liability Insurance Required? 

As a rule, general liability insurance isn’t typically required by any state or federal law. However, you may be required to carry this insurance by certain industries in order to obtain licenses or a landlord if you rent a property. Even without a requirement, general liability insurance is crucial for protecting everyone who interacts with your business along with the business itself. 

Speak with an insurance agent to discuss your general liability insurance needs and requirements. Every business is different and you will need coverage tailored for your industry and unique business’ needs.