Commercial General Liability Insurance
General liability is the base layer of nearly every commercial program. It responds to claims that others bring against your business for bodily injury or property damage.
How this coverage works
How the limits are structured
General liability policies carry a per-occurrence limit and a separate annual aggregate. The aggregate caps what the policy will pay across the entire term, which is why businesses with frequent small claims can exhaust coverage even when each claim is modest.
Sublimits usually apply to damage to premises you rent, medical payments, and personal and advertising injury. Those sublimits are easy to overlook and are frequently the reason a claim is only partially paid.
Contracts drive the requirements
Leases, client agreements, and general contractor requirements often dictate limits, additional insured status, primary and non-contributory wording, and waiver of subrogation. These are endorsements, not automatic features.
A licensed insurance professional can read the insurance section of an agreement before you sign it and confirm whether the requested wording is available from the insurance carrier writing your policy.
Details to review
- Premises, operations, and completed work exposures
- Defense costs generally paid in addition to the limit
- Certificates and additional insured wording for contracts
- Per-occurrence and aggregate limits reviewed together
- Sublimits that cap rented premises, medical payments, and advertising injury
- Excluded losses that need a separate policy or endorsement
- Premium driven by payroll, sales, and the number of locations
What the coverage includes
Coverage names, terms, and availability vary by insurance carrier and state. These descriptions are educational and are not a policy contract.
Common optional add-ons
Endorsements change what a policy covers. Availability differs by insurance carrier and state.
Additional insured
Extends certain liability protection to a party you contract with, as required by the written agreement.
Waiver of subrogation
Gives up the insurance carrier's right to recover from a party named in your contract. Availability varies.
Blanket certificate handling
Sets up recurring certificate issuance for landlords, clients, and general contractors.
Primary and non-contributory wording
Commonly requested in commercial contracts to establish how policies respond to a shared claim.
Who this is generally written for
Eligibility is set by each insurance carrier and can differ by state. Nothing here is a guarantee of eligibility or coverage.
Commonly a good fit
- Businesses with an active operation, revenue history, and a described scope of work
- Owners who can describe payroll, locations, and subcontractor use
- Operations that meet the insurance carrier's underwriting appetite for the class of business
- Retail, service, and hospitality operations with customer-facing premises
- Contractors and trades who need certificates and additional insured wording for client agreements
- Manufacturers, distributors, and importers who sell finished goods to others
- Businesses that host clients, vendors, or the public at a leased or owned location
Worth a conversation first
- Recent claims activity, lapses in coverage, or a change of ownership
- Work performed at heights, below grade, or on critical infrastructure
- Contracts with insurance requirements above standard limits
- Operations that produce, store, or handle flammable, corrosive, or otherwise hazardous materials
- Work that becomes part of a completed structure or a long-lived finished product
- Locations with heavy foot traffic, alcohol service, or large public gatherings
- Companies hiring subcontractors who do not carry their own liability coverage
Availability varies by state
State regulation notice
- Monopolistic workers compensation states
- A small number of states require workers compensation through a state fund rather than a private insurance carrier.
- Catastrophe-exposed regions
- Coastal wind, wildfire, and earthquake exposures often require separate deductibles, sublimits, or specialty markets.
- Licensed trades and permits
- Some states and municipalities require specific bond forms or minimum liability limits before a permit is issued.
Frequently asked questions
Coverage that often comes up next
Related coverage worth reviewing at the same time. Nothing is added without your direction.
- Business Owners PolicyPackages general liability and commercial property for eligible small businesses.
- Liability and property in one policy with one renewal date
- Built for eligible small businesses with modest property values
- Optional add-ons for equipment, data, and hired autos
- Workers CompensationStatutory benefits for work-related injury and illness.
- Medical care and lost wages for work-related injuries
- Employers liability protection for injury lawsuits
- Rated on payroll, so accurate class codes matter at audit
Program review: liability, property, and workers compensation
Most businesses are better served by a coordinated program than by separate unrelated policies. A licensed insurance professional can review how your liability, property, auto, and workers compensation coverage fit together, and where a package or umbrella changes the outcome. Availability and pricing vary by insurance carrier and state.
- Business Owners Policy or Commercial Package Policy
- Workers Compensation
- Commercial Auto
- Commercial Umbrella
- Commercial UmbrellaAdditional limits above general liability, auto, and employers liability.
- Adds limits above liability, auto, and employers liability
- Responds when an underlying policy's limits are used up
- Often required by contracts asking for higher limits
Ready to compare your options?
Start online in a few minutes or speak with a licensed insurance professional. There is no obligation, and quoting does not bind coverage.
Insurance coverage is not bound or effective unless and until it has been confirmed in writing by TruvaLink Insurance Agency or an authorized representative of the applicable insurance carrier. Submission of a quote request, application, payment, or other information does not guarantee coverage or constitute proof of insurance.